2023 (9) TMI 384 - ITAT DELHI

Validity of assessment - non-service of notice u/s 143(2) - HELD THAT:- We find that the AO has categorically stated that in the assessment order, a notice u/s 143(2) of the Act was issued and duly served upon the assessee. Thereafter, Statutory notices u/s 142(1) were issued and served upon the assessee. In response thereto, assessee attended the proceedings. This finding on fact is not rebutted by the assessee by placing any contrary material on record. We therefore, do not find any infirmity into the order of the authorities below, the same is hereby affirmed. Ground No.1 raised by the assessee is thus, dismissed.

Disallowance of depreciation on electricity installations - as per DR Electricity installations are of different rate of depreciation - Assessee submitted electricity installations are being integral part of the plant & machinery. Therefore, the depreciation should be allowed as a plant & machinery - HELD THAT:- In the case in hand, the assessee failed to bring on record, any evidences in support of its contention that the electricity installations were integral part of the plant & machinery. On the contrary, it is brought on record that the electricity installations were separate from the plant & machinery. No reason to interfere in the findings of authorities below, the same is hereby affirmed. Thus, Ground No.2 raised by the assessee is dismissed.

Unexplained creditors - HELD THAT:- AO did not make verification of claim of the assessee that the assessee had made payment in subsequent years so far the credit related to M/s. Lalit Wafers and Namkeens and M/s. Dutt Constructions. In our considered view, Ld.CIT(A) also failed to get these credit entries verified from the aforementioned creditors. Therefore two creditors deserves to be allowed and impugned addition is hereby, deleted. Rest of the addition is sustained as the assessee failed to rebut the finding on fact qua M/s. Accurate Tools (P) Ltd. This ground raised by the assessee is partly allowed.