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2016 (7) TMI 810 - ITAT HYDERABAD

2016 (7) TMI 810 - ITAT HYDERABAD - TMI - Adhoc disallowance of consumption of raw material and personnel cost - Held that:- This issue has been adjudicated in assessee’s own case for the AY. 2009-10. Thus respectfully following the decision of the Co-ordinate Bench in the aforesaid case, we set aside the order of CIT(A) to this extent and allow the expenditure incurred on the same. There is no reason to disallow 5% of expenditure on adhoc basis. - Brought forward losses of earlier years set .....

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ar. 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. - Disallowance u/s. 40(a)(ia) - Non remitting of TDS - Held that:- Since the TDS was remitted during the impugned assessment year, assessee is entitled to claim the deduction of the same amount. - I.T.A. No. 1955/HYD/2014 - Dated:- 5-7-2016 - SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER For .....

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rutiny assessment u/s. 144 of the Income Tax Act [Act] was passed on 21-03-2013 determining the income at ₹ 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 followi .....

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quiries as deemed fit and submit his report after giving due opportunity to assessee. 4.1. The AO has sent his remand repot on 23-01-2014 wherein it was stated that though the notices were issued to the assessee calling for details, there was no responses from assessee. After the report, Ld. CIT(A) confirmed the addition by stating as under: 5. It is pertinent to mention that what Assessing Officer called for in remand proceedings is bills/vouchers in support of expenses. What Authorised Represe .....

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inference in terms Section 114 of the Indian Evidence Act can be drawn to the effect, had those documents been produced, the same would have gone against 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. T .....

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2010- 11 when there is no rejection of books of account, the disallowance of depreciation of ₹ 1,54,86,314/- cannot be made. 3. The AO ought to have appreciated the fact that, once the amount of addition towards Block of Assets is entered into the same should be continued from each year unless it is discarded or removed and depreciation should be allowed on that. 4. In this regard we have placed reliance in the case of M/s. Coromandal industries Ltd having ITA No's 287,288,289 and 151 .....

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,76,28,282/- under "Purchase of Raw Material" @ 5%. 7. The Ld. CIT(A) ought to have considered the explanation given by the assessee regarding the comparison of paper circulation with purchase of raw material. 8. The Ld. CIT(A) erred in confirming the addition made by the Ld.AO and has not maintained any consistency with the previous year regarding disallowance of 5% expenditure of "Purchase of raw material" of ₹ 1,17,59,357/- 9. Without any proper reason and material i .....

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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 ₹ 2,89,05,040/- relating to AY.2009-10 was paid in AY 2010-11. 12. The assessee may add, alter or modify or substitute any other point to the Grounds of appeal at any time before or at the time of hearing of the appeal . 6. Ld. Counsel while referring to the orders of the earlier years and prayer for additional evidence submitted that assessee could not present .....

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eral in nature and require no adjudication. 7.1. As far as disallowance of depreciation (Ground Nos. 2, 3 & 4) is concerned, the same has been adjudicated in assessee s own case for the AY. 2009-10 in ITA Nos. 353/Hyd/2013 & 665/Hyd/2013. The relevant para of the said order is as under: 12. The next issue is with respect to the disallowance of deprecation made by the AO. We find that the AO has passed exparte order u/s. 144 of the Act and reasonable opportunity was not given to the asses .....

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-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 submitted by assessee and thereafter consider the claim of .....

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ion has effected a corresponding increase in circulation revenue. It is the basic principle that when there is a rise in circulation revenue there should be a corresponding increase in material consumption. The consumption of raw material increases on printing more number of copies of printed publication. However, we are in conformity with the order of the CIT(A) on this issue and allow the expenditure incurred for material consumed of ₹ 4,45,22,334/-. The learned CIT(A) has not admitted a .....

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