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2022 (3) TMI 838 - ITAT DELHIUnexplained investment in fixed assets - assessee has inflated the value of machinery and office equipment - As per assessee there is no addition to the fixed assets and the AO does not have any evidence at his disposal regarding any receipt voucher, payment voucher, bills, vouchers payment proof, etc. for any actual investment made by the assessee and since the difference in the WDV at closing of the preceding year and at the beginning of the current year is due to some clerical error which was rectified, therefore, no addition u/s 69 can be made - HELD THAT:- When the there is no actual investment of any kind by the assessee during the assessment year especially in absence of any receipt voucher, payment voucher, bills, vouchers payment proof, etc. provisions of section 69 are not applicable and the error is an accounting/clerical error which occurred in the very first year. Therefore, we are of the considered opinion that the disallowance, if any could have been made by re-computing the depreciation on account of wrong figure of closing and opening balance of WDV but no addition u/s 69 could have been made. We, therefore, set-aside the order of the ld. CIT(A) and direct the AO to delete the addition made u/s 69. AO may re-compute the depreciation on account of difference in the opening and closing balance of the WDV of the fixed assets. The ground raised by the assessee is accordingly partly allowed.
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