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2016 (1) TMI 179 - AT - Income TaxDisallowance of general/other expenses - whether in the absence of complete details and evidence, the non business use/personal use out of the expenses claimed cannot be ruled out? - Held that:- The assessee’s business activities are not only in Jaipur but all over India and the offices of the company are managed by the professionals. The assessee is a company. It has separate legal entity as per the Company Law from the Director of the Company. Personal element in case of a company as decided by the various ITAT Benches and by the Hon’ble High Courts, is not possible. The ld. AO has not pointed out any specific bill which is personal in nature. The disallowance made by the AO is general. By considering the past history, the coordinate Bench has deleted the similar additions in A.Ys 2005-06, 06-07 and 08-09 in preceding years, we have no hesitation in deleting the disallowances/additions retained by ld. CIT (A) out of various expenses - Decided in favour of assessee Disallowance of Marketing and Survey expenses - Held that:- The coordinate Bench of the Tribunal in assessee’s own case for A.Y 2005-06, 06-07 and 08-09 had considered identical issue and set aside the issue to the file of AO by observing a cohesive verification of material appears to be not made. Assessee has produced the income tax record of the survey agencies which in support of its version; there exist no reasoning as to why they are being ignored by ld. AO & CIT (A). There exist conflicting claims about the existence of such survey agencies coupled with non supply of Inspectors report and non-allowing the customary right of cross examining the denying witnesses. Thus assessee has made out a case for violation of principles of natural justice. In the entirety of facts and circumstances we are inclined to set aside the issues relating to Marketing and Survey expenses back to the file of AO to decide afresh after considering the entire evidence and giving the assessee an adequate opportunity of being heard - Decided in favour of assessee Additional depreciation on Plant and Machinery - CIT(A) allowed the claim - Held that:- Hon’ble Tribunal in assessee’s own case for A.Y. 2005-06, 06-07 and 08-09 had considered the identical issue and upheld the order of ld. CIT (A) as news papers and periodicals are distinct commodity than the paper, printing ink and other ingredients used therein. Since a new commercial product comes into existence, the process involved for such transformation amounts to production and manufacture - Decided in favour of assessee
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