TMI Blog2010 (9) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... peal by the Tribunal. - held that:- Revenue could not show or point out any material or error of law in the findings of fact so arrived at by the appellate authorities below to persuade this court to interfere therewith in any manner. - Decided in favor of assessee and against the revenue. - 445 of 2010 - - - Dated:- 15-9-2010 - ADARSH KUMAR GOEL, AJAY KUMAR MITTAL, JJ. JUDGMENT Ajay Kumar Mittal J.- This appeal under section 260A of the Income-tax Act, 1961 (for short "the Act'"), has been filed by the Revenue against the order dated November 13, 2009, passed by the Income-tax Appellate Tribunal, Delhi Bench "F", New Delhi (in short "the Tribunal") in Income-tax Appeal No. 2700/Del/2009, in respect of the assessment year 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned, the Tribunal upheld the order of the Commissioner of Income-tax (Appeals) in that behalf. In regard to the addition of Rs. 50,18,599 made by the Assessing Officer which was deleted by the Commissioner of Income-tax (Appeals), the Tribunal concurred with the view of the Commissioner of Income-tax (Appeals) and upheld the order of the said authority. 4. Qua the disallowance of Rs. 50,000 which the assessee had paid as loan processing fee, by the Assessing Officer, which was deleted by the Commissioner of Income-tax (Appeals) after relying on the decision of the Madras High Court in CIT v. Sri Meenakshi Mills Ltd. [2007] 290 ITR 107 (Mad), the Tribunal put its seal of affirmation. The order with regard to the additions of amounts of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal was right in law in upholding the order of the learned Commissioner of Income-tax (Appeals) in deleting the addition of Rs. 50,18,599 made by the Assessing Officer on account of bogus purchases even though the assessee had failed to prove the genuineness of these purchases ?" 6. We have heard learned counsel for the Revenue-appellant and have also gone through the record. 7. The appeal relates to the deletion of Rs. 2,57,417 and Rs. 50,18,599 made by the Commissioner of Income-tax (Appeals) which has been upheld by the Tribunal. Regarding question No. 1 8. The Commissioner of Income-tax (Appeals) deleted the addition of Rs.2,57,417 which was made by the Assessing Officer on account of deferred revenue expenditure with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer that scrap value of the old dyes/moulds are adjusted in the cost of the new dyes/moulds, but the fact that dyes and moulds are purchased year after year have not been disputed. The matter needs to be examined as to what deduction is admissible on facts and in law, to controvert the assessee's claim of deferred revenue expenditure at Rs.6,43,542. Though the Assessing Officer has opted to invoke the provisions of section 32(1)(iii) of the Act, but it is evident that he has not understood the provisions of section 32(1)(iii) in its true import. The learned authorised representative has given the working of Rs.6,43,542 as mentioned below : Rs. Purchases of dyes/moulds during the year Rs. 15,43,771 ; 20 per cent. there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Rs. 9,60,358. The learned authorised representative has also contended that in fact, expenses on the cost of dyes/moulds is revenue expenditure, as it represents replacements and it does not constitute plant and machinery in its own form and has thus claimed that the correct amount of deduction as revenue expenditure would be admissible at Rs. 24,56,486 qua Rs. 6,43,542 claimed by the assessee. The Assessing Officer has not controverted the correctness of the abovementioned calculations given in the written submissions. In my considered opinion, on the facts and circumstances of the case and the position of law, the Assessing Officer has to adopt a consistent approach and deduction is to be claimed in accordance with law, inter alia, ei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced by the assessee had concluded that all the aforesaid four parties were assessed to income-tax and were having their permanent account numbers with the Department. It was also recorded that the assessee had made payments to the aforesaid parties by account payee's cheques. The findings by the Commissioner of Income-tax (Appeals) have been recorded in detail in paragraph Nos. 10.3 to 10.10 of its order. The Commissioner of Income-tax (Appeals) after appreciating the evidence on record had arrived at the conclusion that the purchases made by the assessee were genuine and not bogus as viewed by the Assessing Officer. The aforesaid findings of the Commissioner of Income-tax (Appeals) recorded were affirmed in appeal by the Tribunal. While af ..... X X X X Extracts X X X X X X X X Extracts X X X X
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