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2015 (10) TMI 1080 - AT - Income TaxAddition u/s 69 - untallied entries /credits /deposits /clearings as appearing in four bank statements shown by the assessee in its books and due to lack of satisfactory explanation/details - CIT(A) deleted the addition - Held that:- Section 69 comes into operation only if investments are not recorded in the books of account maintained by the assessee which is not the case looking to the facts of the assessee wherein the bank balances are shown in the audited balance sheet and reconciliation statement for various entries which were not tallied, as observed by AO but duly put on record before the lower authorities and also filed along with Paper Book. The relevant facts available on record clearly indicate that the non-reconciliation of entries/bank funds transfers which were actually forming parts of the books of accounts were the basis of addition made by the AO and further the AO has duly accepted that the bank accounts are forming part of books of accounts. The AO has himself recorded in his order that assessee has disclosed all the bank accounts in his regular books of account and only because of the reason that some of the entries would not tally at the time of hearing resulted into such additions. Therefore, looking to the above facts there remains no scope of any addition under section 69 of the Act and we do not find any error in the order of CIT(A). - Decided against revenue. Disallowance of machinery repair expenses - CIT(A) deleted the addition - Held that:- From the perusal of the balance sheet of the assessee it is clear that an addition of ₹ 11.24 lacs has been made by the assessee under the head boiler account, which was the capital expenses incurred by the assessee and depreciation has been charged accordingly. The expenses under machinery repair and maintenance have been mainly incurred in relation to boilers which are used to get boiled rice and as a part of the plant come into contact with steam generated from the boiler, thereby getting corroded and require frequent replacement. Similarly consumable stores like rubber rings, hardware items which assist in movement of conveyor belts also need to be replaced regularly due to wean and tear. As such the machinery repair and maintenance expenses incurred by the assessee at ₹ 12,98,213/- are revenue in nature and there is no error in the findings of CIT(A). We uphold the same - Decided against revenue.
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