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2018 (11) TMI 861 - AT - Income TaxDisallowing the claim of Security Charges on ad-hoc basis - non allowable business expenses - Held that:- The security charges for earlier year was disallowed at ₹ 1,48,540/- paid to Krishna Plastic site out of the total claim of the assessee at ₹ 4,46,480/-. There is increase in overall security charges to ₹ 8,14,896/- i.e. which almost double of the earlier year. From the order of lower authorities it is clear the neither genuineness nor expenses as business expenditure was doubted. We find that in earlier year disallowance was at ₹ 1,48,540/- and hence, we restricted the disallowance in this year at ₹ 1 lac. This issue of the assessee’s appeal is partly allowed. Disallowance of deprecation claimed on Crane Crawlers - Held that:- We noted that these cranes and crawlers purchased in 2009 (details are cited above). Accordingly, the assessee’s claim for depreciation was allowed in earlier years and taking the same facts in this year, depreciation cannot be disallowed. Accordingly, we allow the claim of depreciation and this issue of assessee’s appeal is allowed. Depreciation on motor car, interest and vehicle expenses disallowed - motor car was not purchases in the name of the assessee company once the same was purchased in the name of the directors - Held that:- As decided in DCIT vs. Kaytee corporation [2017 (4) TMI 814 - ITAT MUMBAI] depreciation is allowable in the hands of the company, even if it is registered in the name of its director provided that the vehicle is used for the purpose of business of company and income derived there from was shown as income of the company. As the funds for purchase of vehicles have been provided by the assessee company and they have been shown as assets of the assessee company. Hence, the assessee company should be considered as owner for all practical purposes and hence it is entitled for depreciation - Decided in favour of assessee. Addition of share application/ share premium treating the same as unexplained cash credit under section 68 - Held that:- As decided in CIT vs. Orchid Industries Pvt. Ltd. [2017 (7) TMI 613 - BOMBAY HIGH COURT] Assessee has produced on record the documents to establish the genuineness of the party such as PAN of all the creditors along with the confirmation, their bank statements showing payment of share application money.Assessee has also produced the entire record regarding issuance of shares i.e. allotment of shares to these parties, their share application forms, allotment letters and share certificates, so also the books of account. The balance sheet and profit and loss account of these persons discloses that these persons had sufficient funds in their accounts for investing in the shares of the Assessee. - Decided against revenue.
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