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2023 (4) TMI 935 - AT - Income TaxUnabsorbed depreciation carried forward - Period beyond 8 Years - AR submitted that unabsorbed depreciation could be allowed to the assessee to be carried forward and set off even after 8 years without any limit in accordance with section 32(2) as amended by Finance Act, 2001 - HELD THAT:- Gujarat High Court in the case of General Motors India Pvt. Ltd. [2012 (8) TMI 714 - GUJARAT HIGH COURT] as held that unabsorbed depreciation from AY 1997-98 up to 2001-02 got carried forward to AY 2002-03 and became part of it came to be governed by the provisions of section 32(2) as amended by the Finance Act, 2001 and were available for carry forward and set off against income of subsequent years without any limit. Decided in favour of assessee. Disallowance of store purchase - assessee could not produce necessary bills/vouchers during the assessment proceedings before the AO - HELD THAT:- Assessee has submitted most of the bills of expenditure before the ld. AO but due to fire in the office of the assessee, balance bills could not be produced at the time of hearing. Besides that the books of accounts were subject to audit at various levels and its final accounts were also audited by Comptroller and Auditor General of India and no adverse comments has been made by such Govt. Authority. In such a situation, disallowance made under the head of store purchases cannot be sustained. Decided in favour of assessee. CIT(A) enhanced disallowance made by AO - enhancement notice u/s 251(1) read with section 251(1)(2) to show cause that if TDS was not deducted - Non deduction of TDS u/s 194C - Disallowance under the head contractual expenses - HELD THAT:- Appellant correctly objected to such notice issued by the ld. CIT(A) stating that it is barred by limitation as no fresh enquiry could be done by the ld. AO since the ld. CIT(A) powers are co-terminus with that of assessing officer and requested for dropping of such proceeding. TDS on such persons were duly deducted at the time of making such payment in the subsequent years and they have filed complete evidence in this regard to prove the fact. As relying on case of Sri Binay Kumar Singh [2020 (7) TMI 825 - ITAT KOLKATA] as held that enhancement of fresh issue or new section cannot be made at appellate stage. Therefore, enhancement made by the ld. CIT(A) needed to be set aside. Decided in favour of assessee. Allowability of allowance of grant to schools, IICM expenses and Directors salary/remuneration mentioned u/s 40A(2)(b) - HELD THAT:- We find that the assessee has added these expenses and disallowed while computing its income due to mistake whereas none of these expenditures were to be disallowed as per the Income Tax Act. In our considered view these expenses are to be allowed considering the decision of case of CIT Ranchi vs Central Coalfields Ltd. [2012 (11) TMI 1329 - JHARKHAND HIGH COURT] held that expenditures under the head community development, sports, recreation, game, guest house were allowable revenue expenses which are similar to grant of school. However for verification, we are restoring the issues to the file of the AO.
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