2011 (1) TMI 1164 - GUJARAT HIGH COURT

Whether Tribunal is right in law and on facts in confirming the order passed by the CIT (A) deleting the addition made on account of purchase of Crane and allowing depreciation on the same - assessee had never claimed the cost of the crane in the return nor had it debited the expenses to the profit and loss account, and as such the question of disallowing the same and adding the same to the income would not arise – Held that:- in the absence of any evidence to indicate that the purchase was bogus or that the crane in fact did not exist, the question of disallowing the deprecation in respect of the same also would not arise. When the assessee had conclusively proved the purchase and existence of the crane, and had not debited the expenses to the profit and loss account, no addition could have been made in respect of the purchase price nor could have depreciation been disallowed in respect thereof, Tribunal justified in deleting the addition as well as disallowance of depreciation