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2020 (1) TMI 915 - AT - Income TaxDisallowance u/s 35D - Disallowance in respect of Public Issue expenses - HELD THAT:- The assessee has considered the fact that the issue is covered against the assessee. As, the learned AR for the assessee has conceded for the disallowance, therefore, we do not find any reason to probe it further. Accordingly, we confirm the disallowance made by the authorities below. Hence, the grounds of appeal of the assessee are dismissed. Admission of the additional ground of appeal - HELD THAT:- It is a fact on records that all the informations related to the issue raised by the assessee in the additional grounds of appeal are available in the order of the authorities below. As such, there is no need to make any reference to any additional document -The issue raised by the assessee in the additional ground of appeal is legal in nature which can be admitted at any stage during the proceedings. In this regard, we find support and guidance from the judgment of the Hon’ble Supreme Court in the case of NTPC Ltd Vs.CIT [1996 (12) TMI 7 - SUPREME COURT]. Thus we admit the additional ground of appeal raised by the assessee and proceed to adjudicate the same. Rejection of books of accounts - AO adopting GP @40% of the turnover in place of 37% as worked out by the appellant - HELD THAT:- Reasons basing on which the AO for rejected the books of accounts are not sufficient enough and cogent to disregard the books of accounts. Books of accounts of the assessee are not liable to be rejected as per the provisions of section 145 of the Act. Accordingly, we conclude that once the books of accounts of the assessee are not liable to be rejected then its book profit should be accepted in the given facts and circumstances. Accordingly, in the backdrop of the aforesaid discussion and precedent, we set aside the order of the learned CIT (A) and direct the AO to delete the addition made by him. Hence the ground of appeal of the assessee is allowed. Disallowance of depreciation claim - addition on the basis of statement recorded during the survey proceeding u/s. 133A - HELD THAT:- As decided in own case [2020 (1) TMI 838 - ITAT AHMEDABAD] only on the basis of statement recorded during the survey proceeding u/s. 133A cannot be basis of addition. - Decided in favour of assessee.
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