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2016 (7) TMI 1179 - AT - Income TaxDisallowance of depreciation - CIT(A) delted the addition admitting additional evidence - Held that:- A reading of Rule 46-A(2) & (3) of the Rules shows that it was mandatory on the part of the CIT(A) before admitting additional evidence as well as before taking into account any additional evidence produced before CIT(A) to afford opportunity to examine the evidence so produced and to allow opportunity to produce any evidence in rebuttal of such evidence. We are of the view that there was violation of the aforesaid rules as contended by the revenue in their grounds of appeal. It has to be examined as to why the electricity expenses of ₹ 5,01,470/- were capitalized in the books of accounts and not claimed in the profit and loss account and how those charges can be linked to the use of machineries on which depreciation is claimed by the Assessee. It also needs to be examined as to whether the power & fuel charges of ₹ 1,75,340/- was sufficient to carry out the job work charges claimed by the Assessee. For the reasons given above, we are of the view that the order of the CIT(A) on this issue requires to be set aside and the issue needs to be looked into afresh by the AO in the light of the observations as set out above. We hold and direct accordingly. The AO will afford opportunity of being heard to the Assessee before deciding the issue. - Decided in favour of revenue
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