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2018 (4) TMI 336 - AT - Income TaxDepreciation on plant and machinery not put to use - Held that:- AO has not pointed out any defect in the submission of the assessee in his remand report. Merely non filling up the relevant column of tax audit report i.e. put to use, cannot be the basis for making the disallowance of depreciation amount. Similarly all other evinces produced during the proceedings before the lower authorities cannot be disregarded without pointing out any defect. Thus, we cannot ignore the details as furnished by the assessee before Authorities Below during the appellate proceedings. - Decided against revenue Addition on account of interest expense attributable to the acquisition of plant and machinery - Held that:- As we have already held that plant and machineries have been “put to use” during the year under consideration. Therefore, the expense incurred by assessee on account of LC charges and interest charges should be treated as revenue in nature. In the light of above reasoning, we hold that the order of the Ld. CIT(A) is correct and in accordance with law and no interference is called for. We hold accordingly. Addition on account of loss in transit - amount of sale was not realized, therefore, the same was written off as bad debt but under the wrong head “loss in transit” - Held that:- In the claim made by assessee was within the provision of law as specified u/s.36(1)(vii) r.w.s. 36(2) of the Act. Thus, merely claiming the deduction under the wrong head i.e. “loss in transit” would not disentitled the assessee from claiming the benefit of the bad debt. It was also observed that copy of ledger was duly provided to AO at the time of assessment proceedings and in this regard, Ld. DR has not brought anything contrary to the finding of Ld. CIT(A). Thus, we have no alternative except to confirm the order of Ld. CIT(A). - Decided against revenue
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