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2016 (7) TMI 904 - AT - Income TaxSuppression of income - whether he closing stock calls for reduction to the extent of the reduction of purchases due to wrong entry ? - Held that:- It is clear from the order of CIT(A) that the assesse was not able to substantiate the fact that by reason of the inflation of purchases there was neutralizing entry whereby there was increase in the value of the closing stock and therefore there cannot be any inference of suppression of income. Even before us no fresh material is brought to our notice to either dislodge the findings of CIT(A) or to come to a conclusion contrary to the one reached by CIT(A). - Decided against assessee. Road tax and insurance premium - capital or revenue expenditure - Held that:- When a new vehicle is acquired the insurance premium and the road tax paid would assume the character of the cost paid in acquiring the asset. But for incurring these expenses, the vehicle cannot be put to use by the assessee. We are therefore of the view that the treatment of the road tax and insurance premium as capital expenditure, in the facts and circumstances of the present case, was proper and calls for no interference. Depreciation in respect of the Oil Tanker - Held that:- CIT(A) has proceeded on the basis that the Hindustan Petroleum Corporation Ltd has to give permission for use of the oil tanker by the assessee for transporting petroleum products and since such permission was not given, it cannot be said that the tanker was kept ready for use. In our view this conclusion of the CIT(A) cannot be sustained. The circumstances viz., absence of permission of HPCL, can at best lead to the conclusion that the assessee was unable to persuade Hindustan Petroleum Corporation Ltd., to give permission for use of the oil tanker for transporting petroleum products. It cannot however be said that the oil tanker was not kept ready to put to use. There was no impediment for use of the oil tanker for transporting petroleum products and this fact is not disputed by the revenue. In the given facts and circumstances of the case we are of the view that the assessee has successfully established that the vehicle in question was ready for use though it was not actually put to use. We therefore are of the view that the claim of the assesee for deduction on account of depreciation ought to have been allowed and the same is directed to be allowed. - Decided in favour of assessee.
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