TMI Blog2021 (10) TMI 1003X X X X Extracts X X X X X X X X Extracts X X X X ..... gs by passing a reasoned order. Consequently, grounds no. 1 2 are determined in favour of the Revenue for statistical purposes. Disallowance of depreciation - AO disallowed the depreciation on the ground that assets were not put to use during the year - HELD THAT:- We are of the considered view that when the financials of the assessee company are audited one u/s.44AB of the Act which has not been disputed by the AO and date of purchase of the assets has been brought on record which have not been purchased during the year under assessment as is evident from the table extracted in preceding para no. 10, we find no illegality or infirmity in the findings returned by the dl. CIT(A). However, deletion of addition is subject to the verific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcumstances of the case, the Ld. CIT(A) is legally justified in deleting disallowance of depreciation of ₹ 28,76,386/- made by the Assessing Officer (the AO) on the ground that the assets were not put to use during the year under consideration without considering findings of facts as recorded by the AO and without recording his own findings on use of the asset? 4. Whether on facts and in circumstances of the case, the Ld. CIT(A) is legally justified in deleting addition of ₹ 2,24,00,000/- and disallowance of depreciation of ₹ 28,76,386/- by accepting self-serving new claims and documents filed by the assessee even when the assessee had not fulfilled conditions as laid down under Rule 46A of the Income Tax Rule, 1962 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eded to decide the present appeal with the assistance of the ld. DR as well as on the basis of documents available on the file. 5. We have heard the ld. Departmental Representative for the Revenue/appellant to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. GROUNDS NO. 1 2 6. Undisputedly, assessee company has not brought on record any supporting evidence in support of its explanation during the assessment proceedings. It is also not in dispute that by examining the evidence brought on record by the assessee company before the ld. CIT(A), no remand report from the AO has been called. 7. In the backdrop of the afor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hout any reasons, hence set aside. So, this issue is remitted back to the ld. CIT(A) to decide afresh after examining all the evidences brought on record by the assessee during the first appellate proceedings by passing a reasoned order. Consequently, grounds no. 1 2 are determined in favour of the Revenue for statistical purposes. GROUNDS NO. 3 4 9. So far as deletion of disallowance of depreciation amounting to ₹ 28,76,386/- is concerned, it is the case of the assessee company that no new addition to the fixed assets has been made during the year under consideration. On the other hand, AO disallowed the depreciation on the ground that assets were not put to use during the year. 10. Assessee has filed the details of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as made the addition without considering assessee's reply dated 10.03.15. On examination of the details submitted by the appellant, I find that no new addition to the fixed assets is made during the year. The fixed assets on which depreciation has been claimed were purchased between 2004 and 2007 i.e. 5 to 7 years back. As the appellant has a turnover of 96.62 lakhs during the year, the conclusion of the Assessing Officer that the assets were not put to use has no basis. The same cannot be upheld. The addition is deleted. 12. We are of the considered view that when the financials of the assessee company are audited one u/s.44AB of the Act which has not been disputed by the AO and date of purchase of the assets has been brought on r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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