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2023 (8) TMI 1270 - ITAT MUMBAIReopening of assessment - Addition u/s 69C - value of asset bought from the vendor who is alleged to be a suspicious dealer - disallowance of depreciation on the asset above - HELD THAT:- As case of the assessee is reopened based on the information received from Sales Tax Department, Government of Maharashtra as per which the supplier is declared as non-genuine supplier. Accordingly, the case of the assessee was reopened and the value of the machinery declared by the assessee is disallowed and also the respective depreciation claimed by the assessee is also disallowed. In our considered view the AO cannot disallow the total value of the asset and also simultaneously disallow the depreciation claimed by the assessee. The disallowance can only be made to the extent of the benefit claimed by the assessee under the Act. In the given case the assessee has claimed benefit only to the extent of depreciation. As relying on Sashai Natwar Waghela [2020 (11) TMI 595 - ITAT MUMBAI] we direct the AO to delete the additions made. Accordingly, the appeal filed by the assessee is allowed.
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