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2020 (11) TMI 740 - AT - Income TaxTP adjustment - payment made towards field supervision services - assessee had rendered certain services to its AE termed as field services and received after providing discount @15% - TPO, while determining the ALP of such services rendered to AE held that the discount allowed is not at arm's length and accordingly made adjustment - HELD THAT:- We find, while considering identical issue in assessee's own case in Assessment Year 2006-07, the Tribunal [2011 (9) TMI 261 - ITAT MUMBAI] has accepted the price charged by the assessee to the AEs towards provision of field services after allowing discount to be at arm's length. We delete the addition which is not covered under the MAP proceedings. These grounds are partly allowed. Disallowance of cost contribution charges u/s. 37(1), section 40A(2)(b) and section 40A(i) - HELD THAT:- No separate disallowance on the issues raised in the present ground has been made by the Assessing Officer, the ground raised by the assessee has become redundant, hence dismissed. Addition on account of adjustment of unutilized CENVAT credit to closing stock by invoking the provision of Section 145A - HELD THAT:- Remitted the matter back to the file of Ld. AO for redoing the computation in accordance with order for AY 2001-02. Addition on the basis of Annual Information Return (AIR) - AO on the basis of information available on record found that the assessee has not offered income - HELD THAT:- Aforesaid claim of the assessee has not at all been enquired into by the Assessing Officer by making enquiry with the concerned parties. Further, assessee's contention that during the year under consideration invoices of ₹ 51,050/- was raised on Eastern Electrolysers Ltd. has not at all been enquired into by the Assessing Officer. When the assessee has furnished evidence to reconcile the difference and claims that there is no such income was earned by it, the Assessing Officer was duty bound to make proper enquiry to ascertain the correctness of assessee's claim. Without making any enquiry, the Assessing Officer cannot make the additions. More so, when the assessee has disclosed huge turnover and has also offered substantially high income. That being the case, it cannot be expected that the assessee would not disclose such a petty amount. However, it is a fact on record that the assessee was unable to reconcile the difference of ₹ 449/- on account of income received from Hindustan Petroleum Corporation Ltd. In view of the above, we sustain addition only to the extent of ₹ 449/- and delete the balance amount. This ground is partly allowed. Disallowance of depreciation claimed on Uninterrupted Power Supply (UPS) by treating it as plant and machinery - @15% or 60% - HELD THAT:- As noticed, in the case of PCIT vs Goa Tourism Development Ltd. [2019 (3) TMI 287 - BOMBAY HIGH COURT] has held that UPS being a part/accessory of computer is eligible for depreciation at 60%. The same view has been expressed by the Hon'ble Delhi High court in case of CIT vs Orient Ceramics and Industries Ltd. [2011 (1) TMI 26 - DELHI HIGH COURT] and in case of DCIT vs M/s. Sarswath Infotech Ltd [2014 (1) TMI 1888 - ITAT MUMBAI]. In view of the ratio laid down in the judicial precedents referred to above, we allow assessee's claim of depreciation on UPS @ 60%. This ground is allowed. Addition on account of AIR information - HELD THAT:- Without making any enquiry the Assessing Officer has added back the amount. When the assessee claims that he has not entered into any transaction with the concerned parties, the least the Assessing Officer could have done is to ascertain the correctness of assessee's claim by making enquiry with the concern parties. AO having not done so, the addition cannot be sustained. Further, looking at the huge turnover and substantially high income declared by the assessee, it is not at all believable that the assessee would suppress such a small amount. Accordingly, we delete the addition.
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