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2018 (1) TMI 142 - AT - Income TaxEntitled to the depreciation on the block of asset consisting of motor car remaining after crediting sale proceeds of the motor car sold during the year - Held that:- We have observed that the assessee sold motor car but there were other motor cars also existing in the block of assets and the said block of asset of motor car has not ceased to exist as on 31.03.2009 . The assessee has claimed loss on the sale of motor car of ₹ 26,686 which was wrongly debited to P&L account, however the assessee is entitled to the depreciation on the block of asset consisting of motor car remaining after crediting sale proceeds of the motor car sold during the year and to that extent depreciation need to be re-worked to be allowed in accordance with provisions of Section 32 . Thus, this matter needed to be restored to the file of the A.O for re-computation of depreciation in accordance with law after necessary verifications and examination. Disallowance of Renovation expenses - Held that:- We have observed that the assessee has incurred expenses of ₹ 95,94,810/- on account of renovation expenses of the premises for his hospitality business wherein renovation was carried out by the assessee . The assessee could not file the evidences before the A.O to substantiate its claim that these are revenue expenses allowable under the Act. The assessee has furnished additional evidences before learned CIT-A who has refused to admit the same . After considering the material on record and hearing the parties , We are of the considered view that evidences which were filed before the learned CIT-A need to be admitted and adjudicated on merits in accordance with law to sub-serve the interest of substantial justice. Thus, we hereby direct to admit these additional evidences filed by the assessee before learned CIT(A) Disallowance of provision of bonus - Held that:- We did not find any infirmity in the order of learned CIT-A in dismissing the ground of appeal as not been pressed by the assessee because in any case assessee has itself submitted that assessee will claim these expenses in A.Y 2010-11 based on actual payments for the bonus made to the employees in the month of October 2009 which in our considered view is in consonance with provisions of Section 43B(c) r.w.s. 36(1)(ii) . The learned counsel for the assessee has fairly agreed before us that this ground may be dismissed. Hence keeping in view entire factual matrix of the issue we dismiss this ground in the light of the above discussion. Violation of provisions of Section 40(a)(ia) - assessee has claimed these expenses on which income-tax was deducted at source which was paid late beyond the period prescribed u/s 40(a)(ia) - Held that:- We have observed that the assessee has itself submitted before learned CIT-A that assessee has claimed these expenses on which income-tax was deducted at source which was paid late beyond the period prescribed u/s 40(a)(ia) , in AY 2010-11 and thus, the claim of expenses can be allowed in A.Y 2010-11 after verification by the AO . The learned CIT-A has dismissed this ground on the basis of submissions made by the assessee. We do not find any infirmity in the decision of learned CIT-A in dismissing this ground as in any case there will be no prejudice to the assessee as the same expenses shall be allowed in the subsequent year i.e. 2010-11 in which assessee has paid the TDS to the credit of Central Government , after due verification and examination by the AO. We dismiss this ground. Non granting of total TDS receivable by the assessee - Held that:- We do not find any infirmity in the order of learned CIT-A in issuing directions to the A.O to verify the claim of the assessee on merits after due verification with 26AS. We direct the A.O to verify the claim of the assessee and allow the credit of prepaid taxes by way of TDS receivable as is refelected in 26AS after due verification on merits in accordance with law.
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