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2016 (5) TMI 410 - AT - Income TaxDepreciation on a new tank lorry purchased - Held that:- We concur with the contention of the assessee that when an asset is mingled in a block it completely loses its individual identity. In its audit report, the assessee had included the lorry in question in block of assets, thus, it should not have been isolated for making the disallowance of the depreciation claimed on it. Besides, it is an undisputed fact that the tank lorry in question was ready to use. Considering these material facts, we are of the view that the authorities below were not justified in making and upholding the depreciation in question disallowed. The Assessing Officer is thus directed to allow the claimed deprecation on the oil lorry - Decided in favour of assessee Disallowance of interest - Held that:- Making the disallowance the Assessing Officer has ignored some important aspects of the matter. Firstly, the interest free advance in question was not made during the year under consideration and secondly assessee was having sufficient interest free funds to make the advance. The disallowance made by the Assessing Officer was not justified. We thus while setting aside orders of the authorities below in this regard direct the Assessing Officer to delete the disallowance in question made on account of advance given to Dr. Rajbir Singh. - Decided in favour of assessee Disallowance on account of shortage in diesel - Held that:- Since it is not the case of the Revenue that this year, facts on the issue of shortage of diesel on account of handling were different, the Revenue was supposed to maintain consistency on the issue as held in other assessment years. We thus while setting aside orders of the authorities below in this regard direct the Assessing Officer to delete the disallowance made on account of shortage in diesel.- Decided in favour of assessee
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