Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 487 - HC - Income TaxDisallowance of depreciation - assessee could not prove that he had started production and that the excise documents produced were only photocopies and were not the original and, therefore, reliance could be placed on these documents - ITAT allowed the claim - Held that:- The Tribunal after considering the evidence found that the assessee had started the production of poly chips plant at Nasik on 29th March, 1996 and operated the plant during the relevant previous year, which was borne out from the excise records and the raw material purchased and consumed by the assessee. The Tribunal had further given a finding that the excise records were verified by the excise authorities and the genuineness of those documents could not be doubted. In Commissioner of Income Tax Vs. Mentha and Allied Products (2009 (11) TMI 539 - Allahabad High Court) held that the assessee was entitled to claim depreciation on plant and machinery, even though it was used during the year for trial production. Once a finding has been given by the Tribunal that the assessee has operated the plant during the relevant previous year, the assessee became entitled for depreciation and was rightly allowed by the first appellate authority. - Decided in favour of assessee. Disallowance of foreign travelling expenses on 34 persons - disallowance on basis of a tax audit report on the ground that the names of the persons, who had travelled were not given - ITAT allowed the claim - Held that:- Tribunal found that the names of the 34 persons were placed before the first appellate authority, which was examined and accepted and no adverse material was found by the departmental representative. The Tribunal found that 34 persons, who had travelled were dealers and distributors of the assessee and such trip was organized to promote the business of the assessee and, therefore, was entitled for such allowance. This being a finding of fact, which is not perverse, we are of the opinion that no substantial question of law arises.- Decided in favour of assessee. Disallowance of commission - expenditure increased as compared to the expenditure incurred in the previous year - Held that:- Tribunal found that cheques were paid to commission agents, who in turn, were regular income tax assessees'. We are of the opinion that when genuineness of the payments was not doubted by the department, the assessee was entitled to claim such allowance as business expenditure, which could not be disallowed on the ground that the expenditure on the commission in the year in question had increased as compared to the expenditure incurred in the previous year.- Decided in favour of assessee.
|