TMI Blog2014 (2) TMI 463X X X X Extracts X X X X X X X X Extracts X X X X ..... has inter-alia noted that the bills of contractors for the construction were not produced before him - There is nothing on record to show that these submissions of the assessee were put before the Assessing Officer - the Assessing Officer has noted that assessee has not produced any bill of contractor for construction - interest of justice demands in the case that Assessing Officer be given an opportunity to go through these bills and satisfy himself about the veracity of the same – the matter remitted back to the AO for fresh adjudication. Deletion of addition on account of unexplained sundry creditors - The Assessing Officer in this regard has noted that assessee has failed to produce the confirmation certificate from sundry creditors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on on the assets cannot be disallowed merely because the running bills could not be furnished. iii) Whether on the facts and in the circumstances of the case, the Ld. Commissioner of Income Tax (A) has erred in deleting addition of Rs. 6,68,351/- on account of unexplained sundry creditors without appreciating the facts produced by the Assessing Officer in his assessment order. iv) The appellant craves to be allowed to add any fresh grounds of appeal and / or delete or amend any of the grounds of appeal. 3. Apropos deduction claimed u/s. 10A In this case Assessing Officer had made the disallowance u/s. 10A of the Act on the ground that Form No. 56F was not furnished by the assessee before the Assessing Officer. 4. Before the Ld. Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urnished all the details in support of its claim of deduction u/s. 10A before the Assessing Officer and the only reason given by the Assessing Officer in the assessment order for non-allowing of the claim was the non-furnishing of Form 56F. The same Form was admitted by the Ld. Commissioner of Income Tax (A) in the appellate proceedings. In view of these facts, we do not find any infirmity in the order of the Ld. Commissioner of Income Tax (A). Hence, we affirm the same. 7. Apropos Addition made on account of depreciation 7.1 On this issue Assessing Officer noted that in the depreciation chart submitted by the assessee, it was found that addition of Rs. 1,66,46,090/- was made in the building account. Assessee was asked by the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of Architect and cannot be produced by him, were found in correct. In light of the above, Assessing Officer held that it is established that the property was not ready to put to use on different dates as claimed by the assessee. Therefore, the claim of the assessee for depreciation of Rs. 16,62,525/- was disallowed and added back to its total income for taxation. 8. Before the Ld. Commissioner of Income Tax (A) assessee inter- alia submitted that all the contractors bills were submitted during the assessment proceedings. Considering the above, Ld. Commissioner of Income Tax (A) held that he was inclined to agree with the assessee that since the bills in regard to the building were furnished by the counsel of the assessee, the depreci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion. However, Ld. Commissioner of Income Tax (A) has accepted the assessee's submissions that the same were produced during the assessment proceedings. In our considered opinion, interest of justice demands in this case that Assessing Officer be given an opportunity to go through these bills and satisfy himself about the veracity of the same. Accordingly, we remit this issue to the file of the Assessing Officer. Needless to add that the assessee should be given adequate opportunity of being heard. 11. Apropos deletion of addition on account of unexplained sundry creditors 11.1 On this issue Assessing Officer noted that assessee has shown sundry creditors as on 31.3.2009 of Rs. 6,88,351/-. The details of such parties are as under:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceeded to make addition on account of sundry creditors, most of whom are below that amount. Ld. Commissioner of Income Tax (A) further observed that not only this, the sundry creditors represent amounts outstanding on account of credit cards, expenses like legal bills, etc. That if the Assessing Officer has accepted such expenses claimed by the assessee in its profit and loss account, he could not have made addition on account of such expenses remaining outstanding at the end of the year. That moreover, the effect of this addition to income would also be revenue neutral because the assessee is claiming deduction u/s. 10A. Accordingly, the addition so made was also directed to be deleted. 13. Against the above order the Revenue is in ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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