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2020 (1) TMI 17 - ITAT MUMBAIClaim of depreciation - Commissioner (Appeals) has reduced the purchase value by 50% and allowed depreciation thereon - non genuine purchases merely relying upon the information received from the Sales Tax Department - HELD THAT:- Facts on record do establish that the assessee had purchased the machinery and it was installed in its factory. When such evidences were filed before the Assessing Officer, the minimum which is expected from him was to verify the authenticity of these documents before treating the purchases as non–genuine. However, as it appears from record, the Assessing Officer has not conducted any effective enquiry qua the documentary evidences filed by the assessee. It is further evident, merely relying upon the information received from the Sales Tax Department and the fact that the notice issued under section 133(6) of the Act returned back un–served, the Assessing Officer has disallowed assessee’s claim of depreciation. Whereas, learned Commissioner (Appeals) without any justifiable reason has reduced the purchase value by 50% and allowed depreciation thereon. It is not forthcoming from the order of learned Commissioner (Appeals) on what basis he has reduced 50% of the purchase value. In our opinion, when the assessee has furnished certain documentary evidences demonstrating purchase of goods from the declared source and delivery of such goods at its premises, without bringing any contrary material to falsify such evidences, assessee’s claim cannot be rejected on presumption and surmises. When learned Commissioner (Appeals) has factually found that the machinery was received by the assessee and was installed in its factory. Thus, in the facts and circumstances of the present case, we hold that the assessee is entitled to claim depreciation on the entire purchase value of ₹ 10,23,750, as permissible in law. Accordingly, the AO is directed to allow assessee’s claim of depreciation on the amount of ₹ 10,23,750, keeping in view the period for which the asset was put to use. essing Officer is directed to allow assessee’s claim of depreciation on the amount of ₹ 10,23,750, keeping in view the period for which the asset was put to use.
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