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2021 (8) TMI 6 - AT - Income TaxDisallowance of depreciation claimed under the block “furniture & fittings” - assessee had claimed depreciation @ 100% claiming that they are temporary constructions - A.O. disallowed the same holding that the assessee could not prove the expenditure as could not produce bills & vouchers in support of purchase of furniture and fixtures - HELD THAT:- It is an admitted fact that the assessee has not produced any bills/vouchers in support of these payments. The assessee could furnish details of cheque numbers relating to these payments, but could not establish the nature of expenses for which these payments have been made. Since the assessee could produce rental agreements, the ld. CIT(A) has allowed capitalization of payments related to building. It is a settled proposition that the onus to prove the expenditure lies upon the assessee. Since the assessee has failed to prove the nature of expenditure, no infirmity in the order passed by Ld. CIT(A) on this issue. Restricting the depreciation to 10% in respect of interior and other expenses incurred on the showrooms - HELD THAT:- Facts clearly demonstrate that the expenditure incurred by the assessee cannot be termed towards temporary structures. Another fact that the assessee, on the first issue, has sought capitalization of entire amount of ₹ 14,55,919/-. On the above said amount also, the assessee had claimed depreciation 100%. AO disallowed the entire amount for want of bills/vouchers. Before Ld CIT(A), the assessee has only sought capitalization and depreciation @ 10%. Thus, the assessee has accepted the treatment given by AO in respect of the above said amount of ₹ 14,55,919/-. Hence it is not appropriate on the part of the assessee to take a different stand with regard to the remaining amount. CIT(A) was justified in confirming the order of the A.O. in restricting the depreciation to 10%. Appeal filed by the assessee is dismissed.
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