TMI Blog2016 (5) TMI 410X X X X Extracts X X X X X X X X Extracts X X X X ..... o allow the claimed deprecation on the oil lorry - Decided in favour of assessee Disallowance of interest - Held that:- Making the disallowance the Assessing Officer has ignored some important aspects of the matter. Firstly, the interest free advance in question was not made during the year under consideration and secondly assessee was having sufficient interest free funds to make the advance. The disallowance made by the Assessing Officer was not justified. We thus while setting aside orders of the authorities below in this regard direct the Assessing Officer to delete the disallowance in question made on account of advance given to Dr. Rajbir Singh. - Decided in favour of assessee Disallowance on account of shortage in diesel - Hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... application, the Learned AR submitted that the issue raised in the additional ground is very much emerging from the assessment order and no fresh material outside the record is required to be considered for adjudication of the same. He also placed reliance on the following decision: i) NTPC 229 ITR 383 (S.C); ii) DHPL Operators 108 TTJ 152 (Bom.); iii) Hukum Chand Mills 63 ITR 232 (S.C). 3. The Learned Senior DR on the other hand opposed the application. She submitted that no such ground was raised by the assessee in her appeal before the first appellate authority and since the present appeal has been preferred against the first appellate order, the above additional ground cannot be allowed for the adjudication of the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the basis that it is sold in packs and not as loose liquid. Learned CIT(Appeals) has upheld the same. 7. In support of the ground, the Learned AR submitted that while making and upholding the disallowance of the claimed depreciation, the authorities below have failed to appreciate that once an asset formed part of a block of assets then depreciation is allowable on the entire block irrespective of the individual performance of the assets in the entire block. In this regard, he referred section 2(11) of the Income-tax Act, 1961 where block of assets has been defined and also referred section 32(1)(iii) of the Act wherein depreciation on block is provided. The Learned AR also submitted that there are sufficient material on record wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... individual identity. In its audit report, the assessee had included the lorry in question in block of assets, thus, it should not have been isolated for making the disallowance of the depreciation claimed on it. Besides, it is an undisputed fact that the tank lorry in question was ready to use. Considering these material facts, we are of the view that the authorities below were not justified in making and upholding the depreciation in question disallowed. The Assessing Officer is thus directed to allow the claimed deprecation on the oil lorry. The ground No.1 is accordingly allowed. 10. Ground No. 2 : The Assessing Officer disallowed interest of ₹ 40,500 on the basis that the assessee had not charged interest on the advance made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... secondly assessee was having sufficient interest free funds to make the advance. The disallowance made by the Assessing Officer was not justified. We thus while setting aside orders of the authorities below in this regard direct the Assessing Officer to delete the disallowance of ₹ 40,500 in question made on account of advance given to Dr. Rajbir Singh. The ground No.2 is accordingly allowed. 13. Additional ground: In this ground, the assessee has questioned disallowance of ₹ 74,390 on account of shortage in diesel. 14. In support of the ground, the Learned AR submitted that the disallowance in question has been made alleging that assessee had claimed the shortage on higher side to reduce the profit element. He pointed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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