Only 10 Cr Disallowed out of Rs. 35cr Depreciation Allowance Claimed by Oriental Insurance Co. Ltd u/s 32 : ITAT restores for Reconsideration

The ITAT has restored a case for reconsideration, disallowing only ₹10 crore out of a ₹35 crore depreciation allowance claimed by Oriental Insurance Co. Ltd. The Assessing Officer had initially disallowed the entire amount under Section 32 of the Income Tax Act. The tribunal, however, found that the AO's basis for disallowance was partially incorrect and directed a fresh adjudication to calculate the correct amount of allowable depreciation. This decision provides partial relief to the insurance company and highlights the importance of accurate calculations and proper application of legal provisions by tax authorities. It ensures that the taxpayer is not unfairly penalized for a genuine claim.