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2018 (4) TMI 433 - AT - Income TaxDepreciation on electric installations - to be classified as Furniture or Plant & Machinery - Held that:- As seen from Appendix-I which given the depreciation schedule that furniture including electrical fittings is considered as a separate block of asset. Therefore it is necessary that the assessee should show that electrical installations which are claimed to be falling within the block of assets “Plant and Machinery” are integral part of the plant and machinery and falls within the block of plant and machinery and not within the block of furniture and fittings and electrical installations. The AO has clearly brought out in the assessment order that each item had independent functions and was not an integral part of the plant and machinery. In the given circumstances we are of the view that order of the revenue authorities on this aspect does not require any reconsideration. Disallowance u/s 14A - Held that:- The assessee had not earned or received any dividend income during the previous year, we are of the view that there can be no disallowance u/s 14A of the Act. Accordingly the addition made u/s 14A of the Act is directed to be deleted. Addition of interest on fixed deposit - Held that:- Before us the ld. Counsel for the assessee submitted that submissions were made before CIT(A) on this issue. We are of the view that it would be just and appropriate to direct the CIT(A) to decide this issue afresh Unexplained cash credit - no credit entry in the books of accounts - Held that:- It is clear from the ledger account of Flower Trading & Investment Co.Ltd. as appearing in the books of accounts of the assessee that there was a debit of ₹ 20,00,000/- on 22.06.2011 towards refund of loan and a corresponding credit entry on 25.06.2011 reversing the debit entry. These entries are contra entries and do not represent any transaction. Flower Trading & Investment Co.Ltd in their books of accounts have not recognized these transactions at all. It is only because of this that there is a difference between the assessee’s books of accounts and the books of accounts of Flower Trading & Investment Co. Ltd. In our opinion the assessee has rightly reconciled the difference and the addition made by the AO is purely on surmises and ignoring the fact that loan confirmation from Flower Trading & Investment Co.Ltd does not reflect the sum of ₹ 20 lakhs either as loan given to the assessee or loan repaid by the assessee. - Appeal decided partly in favour of assessee
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