Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (9) TMI 1491 - AT - Income TaxAllowability of higher rate of depreciation amounting claimed on Dumper and Payloader - Held that:- We find that the Learned DR did not refute the findings given by the Learned CITA with regard to the nature of business carried on by the assessee and income disclosed thereon. It is seen that the assessee has disclosed income from transportation by dumpers and pay loaders in its profit and loss account and therefore we hold that the assessee is using these vehicles for transportation of goods of other persons. It is pertinent to note that CBDT Circular No. 652 dated 14.6.1993 on this subject states that assessee is entitled to higher rate of depreciation when the vehicles are used by the assessee in his own business of transportation of goods on hire. Thus We find that the Learned DR did not refute the findings given by the Learned CITA with regard to the nature of business carried on by the assessee and income disclosed thereon. It is seen that the assessee has disclosed income from transportation by dumpers and pay loaders in its profit and loss account and therefore we hold that the assessee is using these vehicles for transportation of goods of other persons. It is pertinent to note that CBDT Circular No. 652 dated 14.6.1993 on this subject states that assessee is entitled to higher rate of depreciation when the vehicles are used by the assessee in his own business of transportation of goods on hire.- Decided in favour of assessee Addition in respect of trade creditor - Held that:- We find that the Learned DR did not refute the findings given by the Learned CITA with regard to the fact that the assessee had fully discharged its onus by giving the name and address of the Sundry Trade Creditor M/s Bijay Hardware Stores before the Learned AO. We find that the provisions of section 68 of the Act could not be invoked for the trade creditoRs.We hold that the assessee had duly discharged its onus by placing all the details of the sundry creditor before the Learned AO and just because no reply has been furnished by the said creditor to the Learned AO u/s 133(6) of the Act, that cannot automatically lead to a situation that the said creditor is not having any creditworthiness. We also find that the Learned AO had not disputed the genuinity of the purchases, sales and trading results of the assessee. - Decided in favour of assessee Addition made towards excess payment of dumper and payloader charges and excess expenditure incurred on general account - Held that:- We find that the entire addition has been made only on an estimated basis and the provisions of section 40(A)(2)(b) of the Act could not be invoked without bringing any comparative data for ascertaining the fair market value of goods and charges. Hence we are not inclined to interfere with the order of the Learned CIT A on this ground.- Decided in favour of assessee
|