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TMI Blog2016 (7) TMI 810X X X X Extracts X X X X X X X X Extracts X X X X ..... 6-09-2010 admitting NIL income and un-absorbed depreciation of Rs. 1,49,78,679/-. The scrutiny assessment u/s. 144 of the Income Tax Act [Act] was passed on 21-03-2013 determining the income at Rs. 4,98,95,274/-. 3. During the course of assessment proceedings, the Assessing Officer (AO) issued, several notices requesting assessee to appear before him and furnish the required information as extracted in the order of AO, for which there was no compliance. Therefore, the assessment was completed u/s. 144 of the Act based on the information available on record by making the following additions/disallowances: i. Depreciation on Fixed assets- Rs. 1,54,86,314/-; ii. Disallowance of Expenditure- Rs. 3,76,28,282/-; iii. Disallowance out of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st the interest of the assessee" and Hon'ble Allahabad High Court in the case of Motilal Padampat Udyog Ltd., Vs. CIT (187 ITR 515) held that "where the assessee failed to adduce proof with regard to the genuineness of purchase transactions, although it has been given ample opportunity to do so, the addition on that count was justified". 5.1. Therefore in the absence of any evidences admitted by the appellant despite repeated opportunities in support of its claim, I do not consider it necessary to interfere with the additions made by the AO" 5. Aggrieved by the order of CIT(A), assessee filed second appeal before the ITAT on the following grounds: "1. The Ld.CIT (Appeals) erred both in law and on facts in upholding the assessment m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material" of Rs. 1,17,59,357/- 9. Without any proper reason and material in hand, the Ld.CIT(A) erred in disallowing expenditure incurred for Personnel cost and Production expenses of Rs. 1,17,59,357/- (5% of expenditure under personnel cost and production expenses). 10. The Ld. CIT(A) erred in confirming the addition made by the AO regarding disallowance of the brought forward losses of Rs. 2,88,64,295/- and Rs. 3,27,14,445/- of the AY. 2008-09 & 2009-10 without assigning any specific reasons. 11. The Ld. CIT(A) erred in not considering the additional ground raised by the assessee company towards expenditure disallowed u/s. 40(a)(ia) of the Act for the AY. 2010-11 as the TDS of Rs. 2,89,05,040/- relating to AY.2009-10 was paid in AY ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. However, the same were not produced even before the CIT(A). In the interest of justice, we remit the issue back to the file of the CIT(A) to examine the bills and thereafter consider the claim of depreciation made by the assessee". Before us Ld. Counsel filed additional evidence stating that the assessee-company could trace out various bills and vouchers and in a position to substantiate the claim. To the extent of WDV, AO is directed to examine the past orders and allow the necessary depreciation. The additions to fixed assets during the year require examination of cost as well as usage during the year. Respectfully following the decision of the Co-ordinate Bench, we remit the issues to the file of the AO to examine the evidence being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... off during the current year while assessing the incomes at a positive figure. The action of the AO cannot be appreciated. However, as seen from the orders of ITAT pertaining to earlier years, there are various issues which were sent back to the AO for examination and re-determination. Consequent to those orders, if there are any brought forward losses and (or) un-absorbed depreciation, assessee is entitled to claim set-off and carry forward of the same as the case may be in this year. AO is directed to re-determine the amount and allow the necessary benefit as per the provisions of law. This ground is considered allowed for statistical purposes. 7.4. Ground No. 11 is an additional ground claiming allowance of the amount of Rs. 2,89,05,040/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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