9911796707
TMI Blog2016 (2) TMI 792X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer on account of excess depreciation. 2. On the facts and in the circumstances of the case, the CIT(A) has erred in law and on facts in deleting the addition of Rs. 54,47,050/- made by the Assessing Officer on account of unaccounted expenses and investment. 3. On the facts and in the circumstances of the case, the CIT(A) has erred in law and on facts in deleting the disallowances of Rs. 1,37,084/-, Rs. 72,008/-, Rs. 53,519/- made by the Assessing Officer out of telephone expenses, vehicle depreciation and vehicle maintenance respectively. 4. On the facts and in the circumstances of the case, the CIT(A) has erred in law and on facts in deleting the addition of Rs. 10,00,000/- made by the Assessing Officer on account of sale of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.03.2008. As per valuation report, it was found that 89.72% of the machinery installed by the assessee company at its Baddi unit were old. During the search proceedings on 14.02.2008, it was alleged that group had obtained large scale of accommodation bills from M/s. Krishna Machines & Tools, which was operated by Mr. Dinesh Sharma of Ghaziabad. Shri Dinesh Sharma had already been searched by Investigation Wing on 24.10.2007 and earlier by Central Excise and Custom department. As per search by Central Excise Authorities and his statement u/s. 14 of the Central Excise Act recorded, he was operating three firms and accepted that he had been providing accommodation entries to various concerns in Delhi & NCR. He accepted that he has issued bil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -6 unit were shifted to Baddi unit during latter part of the period. This addition made by the AO stood deleted by the ld. CIT(A) in appeal before him. 3. The DR relied on the order of the AO and submitted that there is no justification to delete the addition made by AO on account of excess depreciation claimed. The ld. AR of the assessee, on the other hand, relied on the order of ld. CIT(A). 4. Having considered the rival submissions and the material available on record we do not find any justification to interfere with the order of ld. CIT(A) on this count. From the list of the machinery purchased by the assessee for the Baddi Unit, it reveals that the purchase of machinery was started from February, 2005 and production at Baddi unit wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee supported the order of the ld. CIT(A). 7. Having considered the record we find no justification to interfere with the conclusion of the ld. CIT(A) on this count. It is notable that no material or evidence was seized in the search to demonstrate that the assessee had incurred expenses in excess to that shown in the books of account. Moreover, on reference, the DVO, Chandigarh has valued the cost of construction of property No. 35 HPSIDC Baddi at Rs. 23,79,000/- on account of building improvement for A.Yrs. 2005-06 to 2007-08, which stands in consonance with the declared expense of Rs. 22,37,694/- shown by assessee in its books of accounts. Moreover, this issue has been decided by ITAT, Delhi Bench in assessee's own case for A.Y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted basis. The ld. CIT(A) deleted the same being based on estimation and surmises without having been substantiated any incriminating material found during the course of search. 10. The ld. DR relied on the order of the AO and the ld. AR supported the order of ld. CIT(A). 11. Having considered the material on record, we find that no incriminating material pertaining to the year under consideration was found in the search proceedings to justify the sale of scrap in this year. The alleged notings, whatsoever, pertained to the years 2007-08 and 2008-09. Moreover, the Baddi Unit of assessee commenced production from May, 2005 and therefore, there is no reason to generate the scrap and sale thereof during the assessment year under consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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