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2015 (11) TMI 1125 - ITAT AHMEDABAD

2015 (11) TMI 1125 - ITAT AHMEDABAD - TMI - Addition on account of non capitalization of interest, loan processing fees and bank charges paid for commencement of commercial production - CIT(A) deleted the addition - Held that:- Examining the relevant accounts of the appellant and find that second unit got commenced on 01.01.2006 as per the disclosure made in the audited accounts. The appellant has capitalized interest; bank charges and other expenses pertaining to second unit (incurred upto Dece .....

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de by Assessing Officer owing to non production of relevant accounts by the appellant’s counsel in the course of assessment proceedings who himself did not verify the factual position with regard to accounting treatment in the accounts leading to unwarranted disallowance. The addition made is directed to be deleted - Decided in favour of assessee.

Disallowance on account of Service Tax of DG Set - CIT(A) deleted the addition - Held that:- The amount so disallowed represents annual ser .....

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d in favour of assessee.

Addition on account of unexplained credits in respect of deposits shown from various customers - CIT(A) deleted the addition - Held that:- CIT(A) examined the issue in his order on the basis of material available on record, such as finding given on the assessment record, submission of the assessee and remand report of the AO. The ld.CIT(A) has given a finding on each and every transaction related to credits. We find that the ld.CIT(A) has considered the materi .....

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; 9 lacs that on verification of contra account with the account of party appearing in the books of account of the assessee. The ld.CIT(A) observed that the said party had maintained only one account in their books. However, it is the assessee who has treated said receipts under different heads such a dealer deposit or share capital/share premium account. Effectively, there is no unexplained receipt in the hands of the assessee. This finding of the ld.CIT(A) is not rebutted by Revenue by placing .....

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finding on fact is not controverted by the Revenue by placing any material on record, therefore we do not see any reason to interfere with the finding of the ld.CIT(A) on this issue, same is hereby upheld - Decided in favour of assessee.

Disallowance of depreciation - Held that:- The assessee has not maintained any log book with regard to movement of vehicle so as to prove its use for business purpose. The first requirement for allowing the depreciation of expenditure on any assets i .....

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rely supplied the PAN, no confirmation or contra account were furnished. Therefore, Therefore, we do not see any reason to interfere with the finding of the ld.CIT(A) on this issue, same is hereby upheld.

In respect of Globe Trade Point, the ld.CIT(A) has given a finding that the assessee had disclosed address of the party, namely Globe Trade Point. With this party, the assessee had made credit sales of ₹ 1,13,218/- in the month of Octoboer-2005 against which the assessee receiv .....

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f the contra account, the ld.CIT(A) was justified in sustaining the addition. - Decided against assessee. - I.T.A. No. 2151/Ahd/2010, I.T.A. No. 1848/Ahd/2010 - Dated:- 6-11-2015 - Shri Pramod Kumar, Accountant Member And Shri Kul Bharat, Judicial Member For the Petitioner : Shri D. C. Mishra, Sr. DR For the Respondent : Shri Sakar Sharma, AR ORDER Per Shri Kul Bharat, Judicial Member These cross-appeals by the Revenue and the Assessee are directed against the order of the Ld.Commissioner of Inc .....

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4/- made by the Assessing Officer on account of non capitalization of interest, loan processing fees and bank charges paid for commencement of commercial production. 2) The ld.Commissioner of Income-tax(A)-XIV, Ahmedabad has erred in law and on facts in deleting the disallowance of ₹ 17632/- made by the Assessing Officer on account of Service Tax of DG Set, being Capital expenditure. 3) The ld.Commissioner of Income-tax(A)-XIV, Ahmedabad has erred in law and on facts in deleting the additi .....

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1158603/- made by the Assessing Officer on account of excess claim of expenditure of gas purchase from ONGC Ltd. 6) On the facts and in the circumstances of the case, the ld.CIT(A)-XIV, Ahmedabad ought to have upheld the order of the Assessing Officer. 7) It is therefore, prayed that the order of the Ld.CIT(A)-XIV, Ahmedabad may be set-a-side and that of the order of the Assessing Officer be restored. 2. Briefly stated facts giving rise to the present appeal are that the assessment u/s.143(3) of .....

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9,000/-, addition on account of unexplained credits in respect of share capital and share premium of ₹ 9,00,000/- and addition on account of excess claim of expenditure in respect of gas purchase from ONGC Ltd. of ₹ 11,58,603/-. The assessee being aggrieved by the assessment order, preferred an appeal before the ld.CIT(A), who after considering the submissions of the assessee and material placed before him partly allowed the appeal. While partly allowing the appeal, the ld.CIT(A) con .....

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of unexplained credits in respect of share capital and share premium. The ld.CIT(A) also deleted the disallowance of ₹ 11,58,603/- made on account of excess claim of expenditure in respect of gas purchase from ONGC Ltd. Aggrieved by the order of the ld.CIT(A), now both the Revenue and Assessee have filed the appeals. 3. First ground in Revenue s appeal is against deletion of addition of ₹ 24,08,684/- made on account of non-capitalization of interest, loan processing fees and bank ch .....

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the orders of the authorities below. we find that the ld.CIT(A) has given finding on fact in para 4.2 of his order, which reads as under:- 4.2. I have carefully considered findings of the Assessing Officer, submissions of the appellant, remand report of A.O and appellant s rejoinder thereon. I am in full agreement with the submissions of the appellant s counsel that neither the Assessing Officer nor the authorized representative of the appellant who appeared in the assessment proceedings looked .....

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d in the profit and loss account represent interest and other financial expenses in respect of first unit (i.e. old unit) for entire period of twelve months and in respect of second unit (i.e. new unit) for three months (i.e. from January, 2006 to March, 2006) only. I find that entire addition was made by Assessing Officer owing to non production of relevant accounts by the appellant s counsel in the course of assessment proceedings who himself did not verify the factual position with regard to .....

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appeal is rejected. 5. Second ground of Revenue s appeal is against deletion of disallowance of ₹ 17,632/- made on account of Service Tax of DG Set. The ld.Sr.DR submitted that the AO had disallowed the claim of the assessee on the basis that the assessee had debited an amount of ₹ 17,632/- as service tax on DG Set. It is noticed by the AO that the auditor in his Tax Audit Report has noted that the same needs to be capitalized. 5.1. On the other hand, the ld.counsel for the assessee .....

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r under misconception reported service contract charges for maintenance of D.G.Set to be as service tax on DG Set leading to unwarranted addition. This finding of the ld.CIT(A) is not controverted by the Revenue by placing any material on record, therefore, we do not see any reason to interfere with the finding of the ld.CIT(A) on this issue, same is hereby upheld. Thus, ground No.2 of Revenue s appeal is dismissed. 7. Third ground of Revenue s appeal is against deletion of addition of ₹ 2 .....

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the concerned parties and also obtained remand report from the AO. The ld.CIT(A) has given a finding on fact that which is not rebutted by the Revenue by placing any material on record. 8. We have heard the rival submissions, perused the material available on record and gone through the orders of the authorities below. We find that the ld.CIT(A) examined the issue in his order on the basis of material available on record, such as finding given on the assessment record, submission of the assesse .....

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rth ground of Revenue s appeal is against deletion of addition of ₹ 9,00,000/- made on account of unexplained credits in respect of share capital and share premium. The ld.Sr.DR supported the order of the AO. 9.1. On the contrary, ld.counsel for the assessee supported the order of the ld.CIT(A) and submitted that the ld.CIT(A) has examined the issue and given a finding on fact which is not rebutted by the Revenue by placing any contrary material on record. In support of his contention, he .....

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is the assessee who has treated said receipts under different heads such a dealer deposit or share capital/share premium account. Effectively, there is no unexplained receipt in the hands of the assessee. This finding of the ld.CIT(A) is not rebutted by Revenue by placing any contrary material on record, therefore, we do not see any reason to interfere with the finding of the ld.CIT(A) on this issue, same is hereby upheld. Thus, ground No.4 of Revenue s appeal is rejected. 11. Fifth ground of Re .....

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before him. He submitted that the ONGC Ltd. has reconciled the difference. 12. We have heard the rival submissions, perused the material available on record and gone through the orders of the authorities below. We find that the ld.CIT(A) has given a finding on fact that the ONGC had recovered transportation charges on supply of gas for which due payment was made by the assessee. This finding on fact is not controverted by the Revenue by placing any material on record, therefore we do not see any .....

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s and in law in confirming disallowance of ₹ 1,11,020/- on account of depreciation; interest and insurance in respect of motor car owned and accounted for in the books by the appellant but registered in the name of Director in RTO records. 2. The learned CIT(A) erred on facts and in law in confirming addition in respect of two parties amounting to ₹ 2,00,000/- (Globe Trade Point) and ₹ 11,50,000/- (S S Enterprise, Nepal) u/s.68 being received as dealer deposit/advance received .....

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dated 28/06/2013. 16.1. On the other hand, Sr.DR submitted that the facts in the present case are different than the facts before the Coordinate Bench in the case of Swagat Infrastructure Ltd.(supra). 17. We have heard the rival submissions, perused the material available on record and gone through the orders of the authorities below as well as the decision relied upon by the ld.counsel for the assessee. We find that the ld.CIT(A) has given a finding on fact that the assessee has not maintained .....

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n before this Tribunal, no such evidence is placed by the assessee, Therefore, we do not see any reason to interfere with the finding of the ld.CIT(A)on this issue , same is hereby upheld. Thus, ground No.1 of assessee s appeal is rejected. 18. Ground No.2 of assessee s appeal is against confirmation of addition in respect of two parties of ₹ 2 lacs(Globe Trade Point) and ₹ 11,50,000/- (S S Enterprise, Nepal) u/s.68 of the Act. The ld.counsel for the assessee submitted that all detai .....

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