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2019 (8) TMI 404 - AT - Income TaxDisallowance of depreciation - AO alleged claim as bogus for the reason suppler denied supply of ETP plant to the assessee - cost of asset described as Effluent treatment Plant System purchased from other party who has provided bill of different party - HELD THAT:- CIT(A) has carefully considered the Inspection Report of Maharashtra Pollution Control Board dated 05.10.2007 who visited the factory of the assessee company at Aurangabad from time to time and their reports which are related to inspection of Effluent Treatment Plant which confirms the operation of ETP(Plant), and other observation made about ETP plant. This confirms the repairs carried out by the assessee in its ETP plant. It is also not out of place, to mention here that on 21.05.2007 when the plant was inspected by the officials of the Maharashtra Pollution Control Board they found leakages in pipe lines carrying effluent from ETP to disposal site. They have specifically mentioned in their report that all resulted pipes are required to be changed and to meet the other adverse observations mentioned and assessee company was directed to remove the same with in a period of 30 days. This all confirmed that assessee was to get repaired its Effluent Treatment Plant as per directions of the Maharashtra Pollution Control Board. Merely because a bill submitted by the assessee was bogus or fabricated cannot negate the other evidences such as the inspection carried out after repair of the ETP plant by the officials of the Maharashtra Pollution Control Board, carriage of the various parts of the plant through transporters from Delhi to Aurangabad, payments made by the assessee through banking Channel to M/s Mahindra Engineering Corporation etc. CIT(A) has rightly observed that repairs were carried out in the ETP plant by the assessee and the same deserves to be allowed. Hence, the AO was rightly directed to allow the depreciation as claimed by the assessee by the CIT(A), which does not need any interference on our part, therefore, we uphold the action of the CIT(A) on the issue in dispute and reject the ground no. 1 raised by the Revenue.
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