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2013 (12) TMI 590 - ITAT COCHINRestriction of rate of depreciation claimed on lorries to 25% - Held that:- Following CIT vs. Gupta Global Exim P. Ltd. [2008 (5) TMI 7 - SUPREME COURT] - Mere inclusion of certain amount in the total business income is not the determinative factor for deciding whether trucks were used by the assessee during the relevant year in a business of running them on hire - The returns filed by the assessee as well as the constitution of the assessee-company were not available - No evidence was produced to show that the assessee was in the business of hiring out motor lorries for running them to earn business income - The entire inference is drawn by the Commissioner of Income-tax(Appeals) only on the footing that the Assessing Officer had treated Rs. 12,59,639/- as part of total business income which is not determinative of the above test, viz., whether the trucks were used in the transportation business as claimed by the assessee – The issue was restored to AO for fresh examination. Disallowance of purchase of iron and steel of Rs. 6,59,164 – The assessee could produce only photocopy and carbon copies of the relevant purchase bills and not the original bills - Held that:- The assessee failed to produce the photocopies of the relevant bills before the Tribunal - The Assessing Officer also did not record a finding that the bills have been authenticated by the concerned sellers - The claim of the assessee have not been verified by anybody – The issue was restored to AO for verification of the photocopies of the bills. Disallowance of a part of purchases of broken stones Rs. 1,08,876 – The purchases of broken stones are supported by either type written papers or hand written papers and not proper printed bills - Held that:- The AO examined some of the suppliers of the broken stones he could not obtain proper bills as expected by him - The trade practice prevailing in that trade is to supply the broken stones on the basis of type written slips or hand written slips only – The details were required from various suppliers of broken stones and most of them confirmed the transactions entered by them with the assessee - The assessee has effected payments by way of cheques in most of the cases – Based on the facts and circumstance of the assessee’s business and prevailing trade practice – Decided in favour of assessee.
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