TMI Blog2010 (10) TMI 1094X X X X Extracts X X X X X X X X Extracts X X X X ..... egality of the assessment. (2) On the facts and in the circumstances of the case, the CIT(A) should have upheld the assessee s contention that the assessment order was bad in law and deserved to be quashed. (3) On the facts and in the circumstances of the case, the CIT(A) has erred in upholding the disallowance of depreciation and further erred in confirming the quantum of such disallowance in a sum of ₹ 3.90 crores (Rs.3,90,30,081/0 to be precise). (4) On the facts and in the circumstances of the case, the CIT(A) has erred in confirming the disallowance of interest expenditure and further erred in upholding the quantum of such disallowance in a sum of ₹ 1.07 crores (Rs.1,06,89,996/- to be precise). (5) On the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . (3) The CIT(A) has erred in law and on facts of the case in allowing depreciation on disallowance of ₹ 1,71,000/- paid to Octroi Department on additional demand raised. (4) On the facts and in the circumstances of the case and in law, the CIT(A) ought to have upheld the order of the AO. 2. The facts of the case are that assessee was incorporated in the year 1993 and is engaged in the business of development of software for corporate and individual clients. It also carries the export of customized software as per the requirements of the clients. The assessee company disclosed a turnover of ₹ 23,33,41,693/- which included exports of ₹ 10,34,16,566/-. The disclosed profit was of the order of 6.16 crores. It claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The AO asked the assessee to attend the office on 24.3.2003 to inspect the impounded papers and cross-examine Rahul Parikh and Smt. Vandana Parikh whose statements were recorded. The allegation of the department is that assessee carried out exports of the computers purchased from Shri Rahul Parikh and Smt. Vandana Parikh two ex employee of the assessee company. These persons have denied to have made any sale to the assessee company. Thus not only the purchases were bogus but also apparently sales carried out of such computers were also bogus. In this connection assessee required to inspect the impounded documents and to cross-examine Rahul Parikh and Smt. Vandana Parikh. The statements and affidavits running into about 150 pages were not le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny. Thus primarily it is for the assessee to produce these persons before the AO so as to enable him to confront these two parties. It will be a stage of re-examination. The revenue authorities should also exercise their powers to enforce the presence of these two persons and assessee is required to give full support by way of providing the addresses, mobile numbers and their other whereabouts so as to enable the AO to serve the summons on them. It is in the interest of the assessee company to extend full support to the AO to enable him to enforce the attendance of these two persons. Merely putting the burden on the AO and to sit quietly will not be in its interest. If necessary the AO can issue commission to the other officer of the depart ..... X X X X Extracts X X X X X X X X Extracts X X X X
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