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Sudesh Yadav Versus ITO, Ward-2, Narnaul

2016 (5) TMI 410 - ITAT DELHI

Depreciation on a new tank lorry purchased - Held that:- We concur with the contention of the assessee that when an asset is mingled in a block it completely loses its 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 .....

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dly 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 - Held that:- Since it is not the case of the Revenue that this year, fa .....

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. Shubhangni Yadav, Adv. For The Department : Shri Anima Barnwal, Sr. DR ORDER PER I.C. SUDHIR: JUDICIAL MEMBER The assessee has questioned first appellate order mainly on the grounds that the Learned CIT(Appeals) has erred in sustaining the disallowances of: i) the claimed depreciation at ₹ 4,56,960 on a new tank lorry purchased for ₹ 15,23,110; & ii) interest of ₹ 40,400 in respect of old advance made to Dr. Rajbir Singh out of self capital. 2. Besides, an application has .....

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ing 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 presen .....

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through the above cited decisions, we find that for allowing application for raising the additional ground, two ingredients are required to be fulfilled. Firstly, the issue is arising out of the assessment order and adjudication of the same does not require consideration of fresh material outside the record. Undisputedly, these two requirements are fulfilled in the present case, we thus respectfully following the ratios laid down in the above cited decisions allow the application of the assesse .....

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l/repairs, salary of drivers have been incurred and the claim of the assessee firm transportation of mobile oil was not accepted 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 .....

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s of the assessee. He submitted that assessee had purchased the lorry on 16.4.2008. Thereafter, the lorry was sent to Pathankot to get it converted into a tanker. The assessee had also paid local area taxes as applicable on commercial vehicle on 22.5.2008 and goods tax was paid on 05.06.2008. He submitted that the moment the lorry was modified to oil tanker, it was ready to use. He submitted further that during the year under consideration, the block of assets shown by the assessee was having va .....

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Learned Senior DR on the contrary placed reliance on the orders of the authorities below. She submitted that the authorities below have dealt with the issue in detail. 9. Considering the above submissions supported with the above cited decisions, we concur with the contention of the assessee that when an asset is mingled in a block it completely loses its individual identity. In its audit report, the assessee had included the lorry in question in block of assets, thus, it should not have been is .....

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nterest of ₹ 40,500 on the basis that the assessee had not charged interest on the advance made to one Dr. Rajbir Singh whereas the assessee was paying interest @ 12% on the loan raised by her. The Learned CIT(Appeals) has upheld the same. In support of the ground, the Learned AR submitted that the advance to Dr. Rajbir Singh was given in earlier years, thus, the Assessing Officer had exceeded his jurisdiction by making disallowance of proportionate interest. He submitted that no such disa .....

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ecisions: i) Bharti Tele-venture 331 502 (Del.); ii) Reliance Utility - 313 ITR 340 (Bom.) 11. The Learned Senior DR on the other hand placed reliance on the orders of the authorities below with this further submission that the assessee has failed to establish that the advance was given to Dr. Rajbir Singh for the purpose of business. 12. Considering the above submissions, we find that while making the disallowance the Assessing Officer has ignored some important aspects of the matter. Firstly, .....

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itional 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 out that the disallowance in question on account of shortage in high speed diesel and petrol has been made by the Assessing Officer referring the parameters of the petr .....

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