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2018 (6) TMI 1180 - AT - Income TaxSale of scrap generated while repairing building - to be taxed as separate income or to be adjusted against the written down value of the block of asset - Held that:- Sale of scrap is related to the building, which is accepted by AO therefore, there is no reason in absence of any other evidence not to grant the same as credit against the returned down value of the assets. Even otherwise, the assessee has been granted less depreciation with respect to the above addition. DR could not controvert the fact that during the year the major repairs and renovation work was going on in the hotel of which the scrap is stated to be by the assessee. No infirmity in the order of the CIT – A in considering that the scrap sale to be adjusted against the written down value of the assets. Addition on account of payment of loan processing fees - Held that:- The revenue did not show it at any time that this sum of ₹ 90 crores has not been used for the purposes of the business by the assessee. The assessee produced the enough evidence before AO about the claim of the above expenditure. AO further enquired under section 133 (6) with the bankers who also confirmed the payment of the above sum. The bank has also confirmed that the loan has been paid to the assessee as term loan. In view of this we do not find any infirmity in the order of the Ld. CIT – A in deleting the disallowance. Disallowance under section 14A - non recording of satisfaction - Held that:- AO did not recorded any satisfaction with respect to the correctness of the claim of the assessee after examining the books of accounts but straightway proceeded to disallow 2% of the other expenditure without any basis - In absence of any satisfaction recorded by the AO, we do not find any infirmity in the order of the Ld. CIT – A in deleting the disallowance - Revenue appeal dismissed.
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