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2015 (8) TMI 83 - AT - Income TaxDisallowance of depreciation - whether CIT(A) ought not to have upheld that the vehicles were not used for running them on hire so that depreciation @ 40% was not admissible? - Held that:- Revenue could not controvert the submission of the assessee that it has, in fact, given its vehicles to various parties during the relevant accounting period on hire, and has declared income thereof. Merely because, there was no separate lease agreement with various parties, is not decisive of the issue. The vehicles were given to various parties on per trip basis, and therefore, separate agreement for carting income for each trip with various parties is not practicable to be executed and produced before the Revenue authorities. In these facts of the case, we are of the view that the assessee was entitled to higher depreciation at the rate of 40% - Decided in favour of assessee. Disallowance of bad debts - Held that:- We find that admittedly, this claim was not made by the assessee at the time of original assessment, and therefore, there is no justification for making this claim after the search operation carried out in the business premises of the assessee. Accordingly, the claim of the assessee is rejected, and the ground of the appeal of the assessee on this issue is dismissed. - Decided against assessee. Undisclosed income on account of seized diary - Held that:- The peak amount of credit and debit entries on the seized papers amounting to ₹ 14,35,666/- could be validity taxed in the hands of the assessee. In our view, there is no justification for further adding net profit at the rate of 5% on the gross receipts on the seized papers of the assessee. There is also no justification for the AO to add the entire receipts side of these seized paper, and not considering the peak of the credit and debit entries. In this view of the matter, we hold that the addition should be sustained to the extent of ₹ 14,35,666/- as against ₹ 19,42,771/- sustained by the learned CIT(A) - Decided partly in favour of assessee. Excess claim of Ujjain division - Held that:- The assessee has claimed a loss of ₹ 13.23 lakhs in its Ujjain division with regard to the work done for road construction, whereas the exact amount of loss determined by the PWD was for ₹ 10,98,087/-. The difference was claimed by the assessee as business loss. In our view, the actual loss being ₹ 10,98,087/-, the balance loss of ₹ 2,24,982/- was rightly disallowed and the issue is accordingly decided against the assessee.
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