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2015 (1) TMI 863 - AT - Income TaxAddition on account of low yield of finished product - rejection of books of accounts - CIT(A) deleted the addition - Held that:- In the case of the appellant, there is no allegation that the appellant was not maintaining vouchers for the purchases or for the expenses. The indirect allegation of the Assessing Officer was that the purchases of sodium nitrate solution would have been more which would mean that the recorded purchases were supported by vouchers and the Assessing Officer had no reason to dispute the recorded purchases. Since, no expenses were disallowed on the basis of non-maintenance of vouchers, the only view can be taken that the expenses are fully supported by vouchers. The contention of the Assessing Officer that the purchases of sodium nitrate solution would have been more is not supported by any evidence on record. It is pertinent to mention here that the appellant's premises were subject to search on 30.08.2005. No incriminating documents leading to unaccounted purchases, unaccounted sales or unaccounted expenses were recovered during the course of search. The appellant's cases for the A.Y. 2006-07 and six years prior to that were completed after thorough scrutiny but no such additions of suppressed production and sales outside the books were stated to be made and if there were any, the same were not brought on record by the Assessing Officer. It is surprising that the books of accounts were accepted for seven continuous years on the basis of same accounting system by the Assessing Officer whereas the accounting system for the eighth year is being found faulty. The addition was made only on possibilities and probabilities which cannot be approved in absence of evidence and without any material on record. No specific error in the findings of the CIT(A) could be pointed out by the Departmental Representative. We also observed from the order of the CIT(A) that the Gross Profit shown by the assessee during the year is 23.63% which compares favourably with the Gross Profit of 21.38% shown in the immediately preceding assessment year. - Decided against revenue. Disallowance towards additional depreciation on plant and machinery - CIT(A) confirmed disallowance on the ground that the conditions required for claiming such depreciation are not fulfilled - Held that:- The Authorized Representative of the assessee could not file any evidence to show that the assessee acquired any new plant and machinery during the year under consideration on which it claimed additional depreciation of ₹ 90,908/-. No material was also brought on record by the Authorized Representative of the assessee to show that the said expenses of ₹ 90,908 was not incurred on the repairs of existing plant and machinery. Therefore, we do not find. - Decided against assessee.
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