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2017 (3) TMI 665 - AT - Income TaxRevision u/s 263 - incorrect claim of depreciation on trucks purchased, expenditure towards insurance claims wrongly claimed and depreciation on capital expenditure wrongly allowed without any enquiry and without examining the issues involved in perspective - Held that:- No material has been brought to our notice by the assessee which goes to prove that the AO had examined the issues raised by the Pr.CIT and allowed these claims after proper factual appreciation thereof. We observe that the assessee could not bring anything on record to prove that an enquiry on the issue was conducted by the AO while completing the impugned assessment. It follows that the claims in question have been accepted without any enquiry thereon. We agree with the observation of the Pr.Commissioner that depreciation allowance under s.32 on the invoices for purchase of the vehicle on the last day calls for minimum satisfaction that the assess were put to use on that day itself. The completion of formalities at a subsequent date gives rise to reasonable and plausible inference in support of the opinion of Pr.CIT which is required to be rebutted by the assessee. Similarly, the insurance claim for the whole year has been claimed even if it is presumed for a moment that the vehicles insured wherein put to use on the last day. Clearly, a presumption would arise that expenses though paid were not incurred during the relevant FY. Similarly, we find merit in the case of the Pr.CIT that depreciation on repair expenses of capital nature have been allowed without making relevant enquiries at all as warranted. Under these circumstances, we are inclined to accept the case made out by the Pr.CIT that the assessment order has been passed without making enquiry necessitated in the circumstances of the case. - Decided against assessee.
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