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2019 (6) TMI 1343 - AT - Income TaxDepreciation on wheel loaders and wheel graders - @ 40% OR 25% - HELD THAT:- The details of the fixed assets on which depreciation has been claimed are also filed before us. On perusal of the same, we find that the wheel loaders and graders are motor vehicles as held by the Coordinate Bench of this Tribunal in the case of NAC Infrastructure Equipment Ltd [2016 (7) TMI 1528 - ITAT HYDERABAD], assessee’s sister concern. Therefore, respectfully following the decision of the Coordinate Bench, we do not see any reason to interfere with the order of the CIT (A). Therefore, the Revenue’s appeals are dismissed. Disallowance of claim of leave encashment on provision basis - HELD THAT:- Though the issue is covered in favour of the assessee by the decision of the Hon'ble Calcutta High Court in the case of Exide Industries Ltd vs. Union of India [2007 (6) TMI 175 - CALCUTTA HIGH COURT] and the Coordinate Bench of the Tribunal in the case of DCIT vs. A.P Seeds Development Corporation Ltd [2014 (3) TMI 1004 - ITAT HYDERABAD] has followed the same to hold that the provisions made towards leave encashment is allowable as a deduction, he submitted that the decision of the Hon'ble Calcutta High Court has been stayed by the Hon'ble Apex Court [2008 (9) TMI 921 - SC ORDER] and the issue is pending for adjudication. As prayed that the issue may be remanded to the file of the AO to pass the final order after the Apex Court decides the issue - we deem it fit and proper to remand the issue to the file of the AO with a direction to give effect to the Hon'ble Supreme Court’s decision in the case of Exide Industries Ltd (Supra). Thus, ground treated as allowed for statistical purposes Disallowance of labour charges - AO disallowed 5% of the labour charges -CIT (A) restricted the disallowance to ₹ 5.00 lakhs - HELD THAT:- AO has made an adhoc disallowance without pointing out any discrepancy or defects in the books of account. The CIT (A) observed that the disallowance on the labour charges is on a higher side and hence restricted it to ₹ 5.00 lakhs. We are of the opinion that only such expenditure which is not substantiated by proper bills & vouchers or which could not be explained by the assessee can be disallowed. Even for making the adhoc disallowance, there has to be a basis or comparative analysis. Since there is no such material on record, we are satisfied that the adhoc disallowance is not sustainable.
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