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2010 (1) TMI 880 - AT - Income TaxWhether production of ready mixed concrete (RMC) amounts to manufacture - Additional depreciation - assessee to claim additional depreciation under section 32(l)(iia) of the Act - mixing of four products in prescribed ratio would result a different identifiable product which cannot be reconverted to its original shape. Hon'ble Supreme Court in the case of India Cine Agencies (2008 -TMI - 31532 - SUPREME COURT ) has considered cutting of a jumbo films rolls into small piece of films a manufacturing activity. - Held that:- Revenue Authority have erred in holding that assessee is not carrying out any manufacturing activity. Assessing Officer directed to allow additional depreciation on machinery used for the production of ready mixed concrete. Disallowance of purchases - net profit in terms of percentage is almost double than the previous year - Assessing Officer was unable to point out a single defect in its books of account. Merely non-filing of confirmation from two suppliers, it cannot be held that assessee has not received the goods from these persons and the credit balance in the shape of sundry credit appearing in the books of account is unaccounted money of the assessee. The assessee has filed certificate from the bank indicating the facts that cheque issued by it were cleared - Held that:- Assessing Officer is not justified in making the disallowance of purchases made by the assessee. appeal filed by the assessee is allowed.
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