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2015 (10) TMI 2368 - ITAT JAIPUR

2015 (10) TMI 2368 - ITAT JAIPUR - TMI - Depreciation at higher rates on hydraulic crane - CIT(A) allowed the claim - not the commercial vehicle as held by the AO - Held that:- Similar issued has been decided by this Bench in the case of M/s. Narayani Cranes vs. DCIT (2014 (2) TMI 662 - ITAT JAIPUR) wherein this Bench has allowed depreciation @ 30% on Hydraulic Cranes - Decided against revenue.

Disallowance of crane operating expenses and wages - CIT(A) allowed part relief - Held that .....

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by the ld. CIT(A) to ₹ 1.00 lac by considering all the aspects in this case and we find no infirmity in the order of ld. CIT(A) on this issue.- Decided against revenue.

Disallowance of conveyance, telephone, advertisement and general expenses - CIT(A) allowed part relief - Held that:- The percentage of conveyance and telephone expenses claimed against the turnover has increased while the turnover has declined as compared to previous assessment year. Therefore, the disallowance .....

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ar and so ad hoc disallowance of ₹ 10,449/- is not sustained under the head advertisement and general expenses - CIT(A) has taken into consideration all the aspects with regard to claim of the assessee as referred in the above Grounds - Decided against revenue. - ITA No. 303/JP/2013 - Dated:- 24-9-2015 - SHRI R.P. TOLANI, JM & SHRI T.R. MEENA, AM For The Revenue : Shri Raj Mehra, JCIT For The Assessee : None ORDER PER R.P. TOLANI, JM This is an appeal filed by the Revenue against the o .....

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lephone and vehicle expenses made by the AO. 4. allowing relief of ₹ 58,092/- out of disallowances of conveyance, telephone and advertisement and general expenses. 2.1 None appeared on the date of hearing on behalf of the assessee in spite of service of notice to the last known address of the assessee. However, the Bench decided to proceed in the matter ex-parte based on the materials available on record. 3.1 The ground no. 1 of the Revenue is regarding allowing depreciation at higher rate .....

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ssee. The AO observed in this case that the assessee derived income from Hiring of Cranes and other equipments in the name of M/s. Agarwal Carriers and Lifters and partnership in M/s. Nawal Kishor & Co. and M/s. Naraini Cranes. The AO on perusal of the depreciation chart observed that the assessee had claimed depreciation of ₹ 16,18,069/- on cranes @ 30% for which the assessee was required by the AO to explain as to why the cranes were treated as commercial motor vehicles used in the b .....

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@ 15% and excess depreciation of ₹ 8,09,034/- was disallowed by the AO. 3.3 The assessee preferred first appeal before the ld. CIT(A) who allowed the depreciation @ 30% by following observations at para 4.3 of her order. 4.3 I have carefully perused the order of the AO and the submissions of the A.R. It is pertinent to note that the identical issue was decided by the CIT (A) in the case of partnership firm of the assessee in the case of M/s. Narayani Cranes in assessment year 2008-09 vide .....

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s furnished vide letter dated 23-11-12. Therefore, is found that the matter is covered by the order supra and the assessee is entitled to 30% depreciation accordingly. 3.4 During the course of hearing, the ld. DR relied on the order of the AO. 3.5 We have heard the ld. DR and perused the materials available on record. The Bench observed that the similar issued has been decided by this Bench in the case of M/s. Narayani Cranes vs. DCIT (ITA No. 783/JP/2011 dated 30-01-2014) wherein this Bench has .....

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he assessee relied on the order of the ld. CIT(A).The case of the ld. AR is that the AO did not understand the nature of work done by the assessee firm. He has submitted that the above decisions are distinguishable on facts as both these decisions are on separate issues. After hearing both the sides, we are convinced that numerous pieces of evidences have been filed by the assessee in support of its claim which includes RTO registration wherein the cranes are registered under the head Truck Cran .....

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of the ld. CIT(A) and the solitary ground of the Revenue is dismissed. Thus respectfully following the decision of this Bench in the case of M/s. Narayani Cranes (supra), we find no infirmity in the order of the ld. CIT(A) which is sustained on the issue of allowability of depreciation @ 30% on Hydraulic Cranes. Hence, Ground No. 1 of the Revenue is dismissed. 4.1 The ground 2 of the Revenue is regarding allowing relief of ₹ 50,000/- out of disallowance of crane operating expenses and wage .....

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rds, the expenditure incurred under this head could not be verified by the AO. The assessee submitted the reply but the AO did not found it tenable. The AO observed that the assessee was not maintaining proper records for wages and other miscellaneous expenses under the head crane operating charges. Thus in the absence of proper supporting bills and the fact that payment was shown in cash, the expenditure could not be verified by the AO. Considering the facts, lump sum addition of ₹ 1.50 l .....

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chers contain the names and address of the recipients of the wages. Therefore, in absence of any primary record, she could not possible have verified these payments. On perusal of the ledger account of crane operation expenses, it is seen that some payments for repairs and maintenance did not have supporting bills. Therefore, it is held that there was a possibility of inflating the wages for reducing the tax liability particularly as the records maintained by the appellant were not subject to ve .....

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maintain the wages register. The AO observed that only self made vouchers were available which were not subject to verification. Thus in the absence of proper records and primary records the AO made a lump sum addition of ₹ 1.50 lacs which has been reduced by the ld. CIT(A) to ₹ 1.00 lac by considering all the aspects in this case and we find no infirmity in the order of ld. CIT(A) on this issue. Hence, Ground No. 2 of the Revenue is dismissed. 5.1 The ground 3 and 4 of the Revenue a .....

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and ₹ 17,897/- on account of general expenses. The AO asked the assessee to submit the supporting evidence but the AO found that the assessee did not maintain proper bills and vouchers for such expense. The AO observed that petty cash payments have been made and the AO observed that such expenditures were unverifiable. The AO disallowed 20% of such expenditure which comes to ₹ 10,449/- and added the same to the income of the assessee. 5.3 As regards disallowance of conveyance expend .....

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erefore, in order to cover up possible leakage of Revenue, the AO disallowed 20% of such expenditure which comes to ₹ 55,003/- and added the same to the income of the assessee. 5.4 As regards disallowance on account of telephone expenditure, the AO observed that the assessee has claimed expenditure of ₹ 1,43,402/- . The AO asked the assessee to furnish the details but it was not noticed that the assessee was not maintaining proper call records. The AO observed that in absence of such .....

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