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2016 (6) TMI 1277 - AT - Income TaxCash credit - Held that:- With respect to the shareholder the AO made an enquiry and issued them letters to appear in person. However, the shareholders did not personally appeared before the AO. The AO in his order observed that assessee company vide its order dated 26-3-2013 had furnished part details with respect to its shareholders, but none attended in response to summons u/s.131(1). The AO also observed that each shareholders company dispatched its reply in response to summons u/s.131(1), however, they did not bother to attend his office. From the record we found that even though assessee has filed the details asked by the AO in support of the share capital being subscribed by respective shareholders, however, they were not produced before the AO even after asking by the AO, in view of the documentary evidence placed on record and considering the fact that shareholders had not appeared before the AO, we restore the matter back to the file of AO for deciding afresh after considering the evidences filed by the assessee in support of the identity, genuineness and creditworthiness of the shareholders. Disallowance of purchases - Held that:- No merit for disallowance of entire amount of purchases. Keeping in view the totality of facts and circumstances of the case vis-a-vis rate of net profit shown by the assessee, to cover up leakage of revenue, if any, we restrict the disallowance of purchases to the extent of 2% of the purchases. Claim of depreciation on wind mill - Held that:- The assessee has duly filed certificate from Superintendent of Engineer Jodhpur certifying the date of commencing the wind mill on 30-9-2009. Certificate from Suzlon Engineering being supplier of the plant was also filed for meter reading of September, 2009. As per these certificates wind mill has worked for more than 180 days. Accordingly, there is no justification for allowing claim of depreciation at 40% applicable for half year. In view of the documentary evidence placed on record, we direct the AO to allow depreciation for the full year on wind mill so installed by the assessee. We direct accordingly.
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