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2015 (10) TMI 487 - ALLAHABAD HIGH COURT

2015 (10) TMI 487 - ALLAHABAD HIGH COURT - TMI - Disallowance of depreciation - assessee could not prove that he had started production and that the excise documents produced were only photocopies and were not the original and, therefore, reliance could be placed on these documents - ITAT allowed the claim - Held that:- The Tribunal after considering the evidence found that the assessee had started the production of poly chips plant at Nasik on 29th March, 1996 and operated the plant during the .....

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used during the year for trial production. Once a finding has been given by the Tribunal that the assessee has operated the plant during the relevant previous year, the assessee became entitled for depreciation and was rightly allowed by the first appellate authority. - Decided in favour of assessee.

Disallowance of foreign travelling expenses on 34 persons - disallowance on basis of a tax audit report on the ground that the names of the persons, who had travelled were not given - ITA .....

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se, we are of the opinion that no substantial question of law arises.- Decided in favour of assessee.

Disallowance of commission - expenditure increased as compared to the expenditure incurred in the previous year - Held that:- Tribunal found that cheques were paid to commission agents, who in turn, were regular income tax assessees'. We are of the opinion that when genuineness of the payments was not doubted by the department, the assessee was entitled to claim such allowance as busi .....

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ng with Sri R.S. Agarwal, the learned counsel for the respondent. The present appeal is for the assessment year 1996-97. The assessee deals in manufacture of polyester yarn chips and other activities and had set up three new units during the period relevant to the assessment year 1996-97. One of the units was established at Nasik, which manufactured polyester chips. The second unit was also established at Nasik, which manufactured poly films and the third unit was set up in Silvasa, which was en .....

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Assessing Officer also disallowed foreign travelling expenses amounting to ₹ 14,91,651/- incurred in respect of 34 persons on the ground that the tax audit report did not mention the names of the persons and, therefore, the genuineness of the expenses incurred by the assessee was doubted. The Assessing Officer also disallowed the payment of commission amounting to ₹ 77,74,517/-. The assessee, being aggrieved, filed an appeal, which was allowed and the aforesaid disallowances were se .....

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hese documents. The Tribunal after considering the evidence found that the assessee had started the production of poly chips plant at Nasik on 29th March, 1996 and operated the plant during the relevant previous year, which was borne out from the excise records and the raw material purchased and consumed by the assessee. The Tribunal had further given a finding that the excise records were verified by the excise authorities and the genuineness of those documents could not be doubted. In Commissi .....

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ed on findings of fact and, consequently, no substantial question of law arises. In Commissioner of Income Tax Vs. Swarup Vegetable Products India Ltd., 2005 (277) ITR 60, a Division Bench of this Court held that the assessee was entitled for depreciation even where the plant or machinery was kept ready for use but was not actually used during the accounting year. Similarly, in Machinery Manufactures Corporation Ltd. Vs. CIT, 31 ITR 203, the Bombay High Court observed that the expression "u .....

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