Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (12) TMI 107 - AT - Income TaxRejection of claim for deduction u/s 80IB - tax authorities have taken the view that the assessee has not actually manufactured goods - Held that:- Perusal of the documents filed in paper book would show that the assessee has obtained permanent SSI certificate, which is normally given after commencement of production only that too after physical inspection. Further, the assessee has also furnished copies of registration made under Central Excise Act, Sales tax Act, Pollution control committee, import & export code, electricity payment bills, labour register etc. Further, the books of accounts also support the claim of manufacture of goods. With regard to the purchase of machineries, the assessee has furnished copies of relevant bills supporting the claim of purchase of machinery and also the particulars of payments made. We notice that none of these evidences were not examined by the tax authorities. Thus, we notice that the tax authorities have drawn adverse inference only on the basis of denial of supply of machinery to the assessee’s personal name by the supplier. In view of the over whelming evidences furnished by the assessee to support the claim of manufacture and sale of goods, we are of the view that the tax authorities are not justified in holding that the assessee was not manufacturing goods.Accordingly, we set aside the order of Ld CIT(A) and direct the AO to allow the claim for deduction u/s 80IB of the Act to the assessee. - Decided in favour of assessee. Disallowance of interest expenditure on unsecured loan - Held that:- This disallowance was made by following the decision taken by the AO for AY 2003-04. The Ld CIT(A) has also observed that there has been no fresh assessment in the set aside proceedings. However, he proceeded to examine this issue of genuineness of laons in AY 2004-05. However, there is no dispute with regard to the fact that the assessee had availed loans in the year relevant to AY 2003-04 and hence the disallowance of interest expenditure would depend upon the decision taken in AY 2003-04 on examination of loans in terms of sec. 68 of the Act. Accordingly, we are of the view that the Ld CIT(A) was not justified in examining the loans in AY 2004-05, which were taken in AY 2003-04. Accordingly, we set aside his order on this issue. However, since the assessment order for AY 2003-04 was not passed, we are of the view that no adverse decision could be taken on this issue in AY 2004-05. Accordingly, we direct the AO to allow the interest claim. - Decided in favour of assessee. Disallowance of depreciation on the machinery purchase - Held that:- We have noticed that the claim of purchase of machinery was rejected only on the ground that the supplier has denied supply of machinery in the name of assessee’s personal name. However, the assessee has furnished copies of bills, particulars of payment, the list of machineries approved under SSI Act etc. Further the assessee has manufactured goods by using the machineries and sold the same. The registration under Sales tax Act and Central Excise Act also shows that the assessee was furnishing necessary returns under those Act. The said In view of the evidences furnished by the assessee, we are of the view that there is no reason to suspect the purchase of machinery. Accordingly, we set aside the order of Ld CIT(A) on this issue and direct the AO to allow the depreciation.- Decided in favour of assessee.
|