Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (11) TMI 949 - ITAT JAIPUR

2016 (11) TMI 949 - ITAT JAIPUR - [2016] 50 ITR (Trib) 48 - Disallowance of depreciation - installation and the commencement of production - Held that:- As noticed that first balance-sheet was drawn by the assessee in the assessment year 2004-05 when it came in production and, thereafter, the balance-sheet for the assessment years 2005-06 and 2006-07 were also prepared which included the cost of the building and plant and machinery and the claim of depreciation in those years. Considering the ma .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

reciation made by the assessee and, therefore, of a considered view that the claim of the depreciation disallowed by the Assessing Officer and confirmed by the learned Commissioner of Income-tax (Appeals) is without any basis and deserves to be deleted. In view of the facts and circumstances of the case, the order of the learned Commissioner of Income-tax (Appeals) is reversed on this issue. - Decided in favour of assessee - Disallowance of household expenses and marriage expenses of the dau .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e For the Respondent : O. P. Bhateja ORDER Bhagchand (Accountant Member) 1. The assessee has filed an appeal against the order of the learned Commissioner of Income-tax (Appeals)- Ajmer dated October 14, 2011, for the assessment year 2007-08 raising therein the following grounds : "(1)(a) On the facts and in the circumstances of the case, the authority below were not justified in not allowing the legitimate depreciation aggregating ₹ 4,31,432 as under : Building on the written down va .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

essing Officer was not justified in disallowing the mandatory depreciation without affording proper opportunity to the appellant to justify the ownership and use of plant and machinery and building (2) On the facts and in the circumstances of the case, the learned Commissioner of Income-tax (Appeals) was not justified in sustaining the addition of ₹ 1,50,000 on account of household expenses of the appellant which was made purely on conjecture, surmise and estimation." 2. 2.1 Brief fac .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nery and ₹ 1,77,888 on building. The Assessing Officer made detailed verification in this regard. He observed that purchase of machinery of ₹ 13.60 lakhs was shown from M/s. Umesh Machinery of Daman. The Assessing Officer made enquiry from this party and it was confirmed by them that machinery of ₹ 13.60 lakhs was sold by them to the assessee on March 5, 2003, but no amount for the same had been received by them till date. The Assessing Officer observed that similarly purchases .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

existence at the given address. The Assessing Officer thus concluded that the assessee has not made any purchases from these three parties and only arranged bills for claiming bogus depreciation. These facts were brought to the notice of the assessee by the Assessing Officer, vide his letter dated December 17, 2009. The assessee, vide his reply letter dated December 24, 2009, argued that the enquiry had been made behind the back of the assessee and, therefore, the same is not acceptable. Howeve .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

red but the same is not acceptable. For the claim of depreciation, ownership of asset by the appellant and its use for business during the year have to be established. In this case, even the ownership of asset has not been established by the appellant. In view of the detailed enquiry made by the Assessing Officer as mentioned above, the onus was on the appellant to prove that the machinery was purchased by her and the same was used for business. Similarly, purchase of material for building was t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ect because the result of the enquiry was communicated to the appellant by the Assessing Officer. The Assessing Officer not only issued a letter to the appellant but also sent summons under section 131 at the Beawar and Jalgaon address of the appellant. The appellant failed to make compliance in response to the summons before the Assessing Officer. Therefore, her claim that no proper opportunity was given by the Assessing Officer is absurd, to say the least. 5.5 In view of the detailed discussio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of ₹ 4,31,432 is in order and the same is confirmed. Ground 4 is thus dismissed." 2.3 Now, the assessee is before me against the order of the learned Commissioner of Income-tax (Appeals) and the learned authorised representative of the assessee prayed that the amount of ₹ 4,31,432 disallowed by the Assessing Officer and confirmed by the learned Commissioner of Income-tax (Appeals) may kindly be deleted. The learned authorised representative of the assessee also prayed that the a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tion dated September 15, 2014, the assessee filed the additional evidences for consideration and admission of the same as under : "(1) Copy of the site plan of the industrial building of Aggressive Polyweave situated at plot No. 5, Gate No. 123, Maniyar Estate, Jalgaon measuring 920.74 square metres. (2) Copy of the registration as small scale industries issued by the District Centre, Jalgaon, dated December 4, 2000. (3) Copy of the consent certificate from the Maharashtra Pollution Control .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

o the controversy involved in the present case, there appears no necessity to admit and consider these evidences inasmuch as in my view the evidences already available are sufficient to dispose of the concerned grounds of appeal. Accordingly, I am not inclined to admit the additional evidences filed by the assessee and, hence, the application filed by the assessee under rule 29 of the Income-tax (Appellate Tribunal) Rules is rejected. 2.5 It is further observed from the record that the basic con .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ore, the depreciation so claimed was disallowed. However, I find that the assessee disclosed job receipts on account of manufacturing of plastic granules of ₹ 6,51,000, as appearing in the trading account, copy placed at the assessee's paper book page 46. The Assessing Officer, however, rejected the books of account produced in support of such receipts and feeling dissatisfied also made trading addition of ₹ 2,00,000. In the first appeal, the Commissioner of Income-tax (Appeals) .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

icer did not make any independent enquiry to prove that the job work receipts declared by the appellant are not correct. No specific defects have been pointed out in the books of account of the appellant. Therefore, there is no justification for rejection of the books of account by invoking the provisions of section 145. The addition of ₹ 2,00,000 is also without any basis and the same is directed to be deleted. Grounds Nos. 2 and 3 are, thus, allowed." It is noted that the above find .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

achinery as shown by the assessee at ₹ 24,40,162 and ₹ 37,56,214 respectively. The Assessing Officer cannot be permitted to have two different yardsticks, i.e., while dealing with the trading addition accepting the books of account, however, while dealing with the claim of depreciation, disbelieving the same sets of account. Since the income generated from the use of those assets under dispute has been assessed by the Assessing Officer, there is no reason now to doubt the very existe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

iyar Plast Ltd. whereas ₹ 13,310 were paid to the Maharashtra Electricity Board. Copies of electricity bill and debit notes are available in the assessee's paper book at pages 112 to 117. Similarly, wages of ₹ 22,270 was also paid this year in connection with the job work done by the asses see and the supporting vouchers were submitted which are placed on record. It is observed that the assessee also submitted copies of all the bills and vouchers of the plant and machinery and of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ion in those years. Considering the materials and the documents available on record, it appears that nobody visited the site where the factory of the assessee was situated which indicates that the Assessing Officer merely proceeded on suspicion. He failed to bring contrary evidence on record. It is also noted that after a lapse of a considerable period and after the installation and the commencement of production, the Assessing Officer made enquiry in the subjected year and merely proceeding on .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

wed and, thus, the ground of Appeal No. 1 of the assessee on this issue is allowed. 3. 3.1 As regards ground No. 2 of the assessee, the Assessing Officer required the assessee, vide order-sheet entry dated May 12, 2009, to submit the details of the expenses of quantum of household expenses of her own and her husband as well as the details of the schooling children. The same was provided by the assessee, vide letter dated June 2, 2009, indicating that the assessee has family consisting of self, h .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n from the account of M/s. Krishangopal and Shrigopal and Company. The Assessing Officer observed that the assessee submitted the copy of the account of Kumari Khushbu Malpani but it is not known whether the amount withdrawn from that company on the marriage of Kumari Khushbu Malpani was used and no details were produced. The Assessing Officer observed that the son of the assessee is doing chartered accountancy whose details of the expenses were not submitted but informed that ₹ 7,500 is d .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

education of the children, the expenses shown ₹ 5,000 is not acceptable. Hence, the Assessing Officer issued the summons under section 131 of the Act which was not complied with by the assessee and the assessee did not submit the complete details of marriage expenses and the household expenses from which the Assessing Officer could deduce the actual expenses incurred by the assessee. In this view of the matter, the Assessing Officer came to the conclusion that the assessee has incurred ex .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

1 during the year. He has business interest in various concerns such as Maniyar Plant, Ganesh Traders, Malpani Bros, and Shanti Jewellers. The appellant belongs to respect able middle class family maintaining car and other amenities. In such a situation, the total drawings of ₹ 65,000 for the entire year are grossly inadequate. Similarly, the explanation that no expenses were incurred on marriages of daughter by the parents and only amount lying in her credit was utilised for the same is n .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version