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2018 (6) TMI 1173 - AT - Income TaxAddition made on account of unaccounted production and sale - Held that:- the issue has been decided by the co-ordinate bench of the Tribunal in assessee’s own case for AY 2002-03 wherein it has been held that production loss depends on number of factors and in absence of any comparable to show that loss shown by the assessee is excessive and thus the appeal was decided in favor of the assessee - thus we find that no evidence of purchases and sales outside the books of accounts were brought before the authorities below - hence following the earlier order we dismiss the ground raised by the Revenue. Disallowance of credit in respect of retained modvat credit relating to the opening stocks - Held that:- following the decision of co-ordinate bench of the Tribunal in case of [2013 (6) TMI 286 - ITAT MUMBAI] wherein it is said that provisions of section 145A, has been brought on statute w.e.f. 1st April 1999. Therefore, the same will be applicable in the AY 1999-- 2000 - hence restore this issue back to the file of the AO to decide the same as directed. Disallowance u/s 40A(2)(b) - Held that:- for making disallowance u/s 40A(2)(b) AO has to demonstrate the excessive or unreasonable payment in the current year also vis a vis the market rate of such services. The AO has failed to prove that payment is unreasonable and excessive and we, therefore, following the co-ordinate bench of the Tribunal and maintaining the consistency with the earlier year, dismiss the ground raised by the Revenue. Disallowance of depreciation on testing equipment provided to laboratories and hospitals free of charge - Held that:- the issue involved is squarely covered in favour of the assessee by the decision of the co-ordinate bench of the Tribunal in [2014 (2) TMI 978 - ITAT MUMBAI] for A.Y. 2002-03 wherein it has been held that the assessee is entitled to the depreciation on testing equipments provided to the laboratories and hospitals free of charge - thus decided against the revenue. Technical knowhow royalty payment @ 2%/4% instead of 1% - Held that:- the issue is covered in favour of the assessee by the decision of the co-ordinate bench of the Tribunal in [2014 (2) TMI 978 - ITAT MUMBAI] for A.Y. 2002-03 - Decided against the revenue.
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