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TMI Blog2017 (2) TMI 1473X X X X Extracts X X X X X X X X Extracts X X X X ..... nd rebate, depreciation and additional depreciation without properly appreciating the factual and legal matrix as clearly brought out by the Assessing Officer. (ii) The Learned CIT(A) has erred on facts and in law in deleting the addition of Rs. 93,77,075/- on account of discount and rebate without appreciating that these expenses have been allowed to customers separately outside the sale bills and also no question of rebate and discount arises when once the contract of sale has been entered & the same has been created/performed when the sale bill was made and goods supplied. (iii) The Learned CIT(A) has erred on facts and in law in deleting the additions of Rs. 65,04,525/- and Rs. 87,33,201/- on account of Depreciation and Additional Depreciation respectively without appreciating that the assessee itself has accepted the fact that new undertaking established in Chennai are manufacturing unit and in which the manufacturing activity has not yet begun. (iv) The Learned CIT(A) has erred on facts and in law in deleting the additions of Rs. 9,32,473/- on account of interest @ 12% of the cost of land purchased, without properly appreciating the factual and legal matrix as clearly brou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng at Chennai. The AO observed that the assessee had furnished electricity bills for its Maharashtra units located at Pune and Nasik for the whole year while the assessee has furnished electricity bill for its Chennai unit only for the month of April 2011. It was observed by the AO that the assessee has not submitted any electricity bill for the entire previous year ended 31-03-2011 with respect to new undertaking stated to be operative at Chennai. The AO also observed that the assessee has not furnished any certificate for commencement / commissioning of its manufacturing unit at Chennai and even trial of activity certificate was not furnished. The AO observed that the assessee had claimed depreciation of Rs. 65,04,525/- and additional depreciation of Rs. 87,33,201/- for its new plant and machinery purchased for assesse's new industrial undertaking at Chennai plant. The assessee was asked to furnish details of depreciation and additional depreciation along-with documentary evidences to prove the eligibility. In reply, the assessee furnished the details of depreciation along with a certificate from the Auditors, wherein the Auditors mentioned as under:- "we certify that the deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee to prove that the lands were purchased from its own interest free accruals and no cost of interest has been directly or indirectly borne by the assessee for purchase of land and this onus has not been discharged by the assessee. Thus, the A.O. brought to tax by disallowing interest expenses amounting to Rs. 9,32,473/- @ 12% on cost of land amounting to Rs. 77,70,605/- and disallowed the interest expenses being expenditure not incurred exclusively for the purpose of business of the assessee vide assessment order dated 25-03-2014 passed by the AO u/s 143(3) of the Act. 6. Aggrieved by the assessment order dated 25-03-2014 passed by the A.O. u/s 143(3) of the Act, the assessee carried the matter before the ld. CIT(A) by filing first appeal. Before the ld. CIT(A), the assessee had submitted large number of additional evidences w.r.t. all the three additions to justify its claim which were annexed to statement of facts filed along with the appeal in the form of Annexure A to D (pages 166-378/paper book filed with the tribunal) . The learned CIT(A) adjudicated the first appeal on merits by accepting the contentions of the assessee by deleting all the three aforesaid additions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A) being Annexure A to D (pages 166-378/paper book filed with the tribunal) . The ld. CIT(A) admitted theses additional evidences filed with respect to all the three afore-stated additions made by the AO to the income, wherein all the three afore-stated additions stood deleted by learned CIT(A) on appreciation on merits of these large number of additional evidences filed by the assessee with learned CIT(A) vide his appellate order dated 31-03- 2015. These large number of additional evidences so submitted by the assessee for the first time during the course of appellate proceedings before the learned CIT(A) were admitted by the learned CIT(A) without giving and specifying any reasoning and justification as to the limbs under which as contemplated under Rule 46A(a) to (d) of Income-tax Rules, 1962 these additional evidences were admitted by him while adjudicating first appeal of the assessee as no justification were given by the assessee for non-filing of these evidences before the learned AO. Further, these large number of additional evidences were also not forwarded by learned CIT(A) to the A.O. for giving an AO an opportunity of examination, verification and seeking AO's comments ..... X X X X Extracts X X X X X X X X Extracts X X X X
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