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TMI Blog2016 (7) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... 30.09.2009 declaring an income of Rs. 1,31,77,350/- which was processed u/s 143(1) of the Act, later on the case was selected for scrutiny. The AO framed the assessment at an income of Rs. 1,49,70,220/- by making the various additions on account of long term capital gain interest on FBT and depreciation on computer peripheral. The AO also initiated the penalty proceedings u/s 271(1)(c) of the Act. 3. The submissions of the assessee before the AO were as under : "The assessee under the bona fide belief deducted the whole amount of consideration from the block. As soon as the assessee came to know, it offered the long term capital gain on the value of land to be included in its income. Nothing has either been concealed nor inaccurate parti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory building and the profit earned on the sale of factory building was shown as income under the head 'Other Income'. It was further submitted that during the course of regular assessment, the assessee segregated the cost of land and building on the basis of formula adopted by the AO and offered the capital gain tax, on the value of land accordingly the AO made the addition of Rs. 17,69,915/- on account of long term capital gain. It was further submitted that the assessee was under the bona fide belief that the amount was deductible from the block of factory buildings as it contained the value of land as well as value of factory building. Accordingly the assessee claimed depreciation on the value reduced by Rs. 46,00,000/-. It was further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,25,055/-. 3. For the assessment year 2009-10, return declaring income of Rs. 1,31,77,350/- was filed on 30.9.2009, which was computed as under: Net profit as per P&L A/c 2,26,08,586 Add: depreciation as per books 2,42,68,289 Donation 43,706 Gratuity 14,96,551 Roc fees 2,07,118 2,60,15,664 4,86,24,250 Less: Depreciation as per rules 3,06,42,870 Gratuity paid 6,81,449 Profit on sales of fixed assets 41,22,579 3,54,46,898 Total Income 1,31,77,350/- 4. Since the Appellant has been claiming depreciation on the entire cost of factory building and land at Shivakasi, Tamilnadu, therefore, on sale of the factory, the entire consideration of Rs. 46,00,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nafide. 9.The bonafide of the Appellant is evident from the fact that not only WDV of the factory building was reduced by the consideration of Rs. 46,00,000/- in the year in question but in the later assessment years i.e. 2010-11, 2011-12, 2012-13, 2013-14 and 2014-15 also the depreciation on the factory building was claimed on the reduced WDV. To substantiate that even in later years, the Appellant claimed depreciation on the block as reduced by Rs. 46,00,000/-, the computation of income for assessment year 2010-11 to 2014-15 with balance sheets and the assessment orders for the respective years are being filed at pages 10 to 63 of the paper book. . The assessment orders for assessment years 2010-11, 2011-12 and 2012-13 would show that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion" and accordingly, the block was reduced (page 9 of the paper book). 13. That the additional evidence by way of computation of income for the assessment years 2010-11 to 2014-15 with balance sheets and the assessment orders are vital to decide the issue of levy of penalty u/s 271(l)(c) of the Act. The evidence being filed is on the record of the Assessing Officer but for the later assessment years. Admission of additional evidence would not cause any prejudice to the department, rather, it would advance the cause of justice. In view of the above, it is submitted that in the interest of justice and to enable this Hon'ble Tribunal to arrive at a just decision, the additional evidence may be admitted and be adjudicated upon. It is s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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