9911796707
TMI Blog2000 (6) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee. 3. The learned counsel for the assessee has submitted that during the course of assessment the AO has raised a specific query with regard to the registration of the firm and depreciation on centering plates and the queries were duly replied to by the assessee along with the material evidence. Having satisfied with the reply to the queries and the material available on record the AO allowed registration of firms and granted 100 per cent depreciation on centering plates. In support of his contention the learned counsel has invited our attention to the queries raised by the AO and the reply of the assessee along with the evidence appearing at pp. 16 to 23 of the compilation of the assessee with the submission that once the AO has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tors vs. Asstt. CIT (1995) 53 TTJ (Ind) 432; (iii) CIT vs. Shri Govindram Seksariya Charity Trust (1987) 65 CTR (MP) 28 : (1987) 166 ITR 580 (MP); and (iv) CIT vs. Ratlam Coal Ash Company (1987) 65 CTR (MP) 305 : (1987) 171 ITR 141 (MP). 4. The learned Departmental Representative, on the other hand, submitted that the claim of the assessee with regard to 100 per cent depreciation on steel centering plates was not properly examined by the AO while allowing the claim of the assessee. Whatever assessee stated before the AO, it was accepted by him without applying his mind to the fact that one single centering plate did not constitute plant and machinery; rather all the plates taken together may constitute plant and machinery on which deprec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the issue of status of the assessee was duly examined by the AO during the course of assessment proceedings. It is obvious from record that the AO raised the specific query with regard to non-filing of certified copy of the partnership deed and in response to that a certified copy of the partnership deed duly certified by the partners was filed during the course of assessment proceedings. A specific observation of the AO in this regard is evident from the assessment order. It has been repeatedly held that omission of filing a certified copy of the partnership deed along with the return of income is only a procedural irregularity and the same can be rectified by filing a certified copy before the completion of assessment. Since the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in the case of CIT vs. M.M. Khambhatwala (1992) 198 ITR 144 (Guj) in which their Lordships have held that the CIT can exercise his powers even where the issue is debatable.
7. Taking into account the totality of the facts of the case in the light of the aforesaid discussion, we are of the view that the finding of the AO with regard to depreciation on centering plate is erroneous and prejudicial to the interests of Revenue and the CIT was justified in setting aside the order of the AO on this count with the direction to reframe the assessment in the light of the relevant provisions of law. We, therefore, uphold the order of the CIT on this count.
8. In the result, the appeal is partly allowed. X X X X Extracts X X X X X X X X Extracts X X X X
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