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2016 (1) TMI 535 - AT - Income TaxDepreciation on machinery purchased from group of companies - CIT(A) allowed the claim - Held that:- Parties from whom machines have been purchased are registered under VAT, purchase bills have been issued, entry is available in Gate Pass Register. The reason for absence of lorry number was that the machine(s) purchased from Prakash Finstock Pvt. Ltd. was at Ex- Mill delivery and, therefore, the transportation charges were not required to be paid by the assessee and in the case of Ashutosh Fibre Pvt. Ltd., this supplier being local party, hand cart was used for bringing the separate parts of the machine to the destination which were later on assembled at the assessee’s premises. Due to this reason there was no transport receipt for machine purchased from Ashutosh Fibre Pvt. Ltd. Therefore, the assessee was having sufficient reason for not having lorry receipt for the machines purchased from Prakash Finstock Pvt. Ltd. and Ashutosh Fibre Pvt. Ltd. Apart from this, nothing contrary has been brought on record by the Assessing Officer to controvert the submissions of the ld. AR in regard to the details submitted in the form of bills, Gate Pass entry, inward entry of machinery, copy of bills of machinery of original purchaser etc. In these circumstances and on the basis of our observations above, we are of the opinion that as the assessee has furnished sufficient documents and evidences to prove the genuineness of purchase of machineries from group companies and therefore, we do not find any reason to interfere with the finding of ld. CIT(A) - Decided in favour of assessee Addition under section 41(1) on account of cessation of liability - CIT(A) deleted the addition - Held that:- The liability of sundry creditors has not ceased to exist rather there were regular transactions with these parties in the latter years as well. Not a single instance has been brought to prove that sundry creditors have denied their claims nor the assessee has written off the liability in its books of account in the year under plea, and therefore, respectfully following the judgment of Hon’ble Apex Court in case of CIT vs. Sugauli Sugar Works (P) Ltd. (1999 (2) TMI 5 - SUPREME Court) and CIT vs. Bhogilal Ramjibhai Atara (2014 (2) TMI 794 - GUJARAT HIGH COURT ) and in light of our discussions made above, we find no reason to interfere with the order of CIT(A) - Decided in favour of assessee
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