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2015 (10) TMI 73 - ITAT DELHIDisallowance of depreciation - whether the business of the assessee was set up as on 31st March, 2005? - Held that:- In the case on hand the Revenue is not disputing the fact that the assessee has sold goods worth ₹ 698.70 on 28.3.2005. The assessee has filed both excise records as well as sales tax records, as evidence of sale. This evidence is not controverted by the Ld.D.R. except for some that these are self-serving documents. In our view the assessee has effectively replied to the issues raised by Ld.AO. Records were produced to demonstrate payments made to the contractors for construction of the building. It was also demonstrated that the assessee had two large generators of 500 KVA and that these generators were run for substantive number of hours and that there was substantial consumption of fuel. There is no denying of the fact that the trial run production was carried out by the assessee. There was a pilot lot of goods produced by the assessee and there was also a sale of goods produced by the assessee. Except for finding fault with the evidences produced by the assessee, there is no material with Revenue to controvert the stand of the assessee. Thus in our considered view, once we have come to a conclusion that the assessee's business was set up prior to 31st March, 2005 and that the plant and machinery were ready to use and that the trial run has been carried out, we have to accept the contention of the assessee that the disallowance of depreciation and business loss by the AO, as confirmed by the First Appellate Authority is erroneous. - Decided in favour of assessee.
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