TMI Blog2022 (9) TMI 863X X X X Extracts X X X X X X X X Extracts X X X X ..... he findings of the ld. CIT(A), which are hereby confirmed and the grounds of appeal taken by the assessee is dismissed. Disallowance of depreciation on sewing machine - HELD THAT:- It is apparent that the AR of the assessee company has miserably failed to rebut the findings of the AO. These assets have been received at the last day of the financial year. The assessee cannot take undue advantage of the plea that once the assets are merged into the block of assets it loses its identity and the question of actual use of a particular asset in the year should not be relevant for allowing depreciation in respect of the same. Here the AO has given specific findings on the basis of bills produced by the assessee. No positive evidence has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion was filed. Further, it is noticed that the appeal was filed way back in the year 2019 and thereafter, the matter has been adjourned from time to time for one reason or other and there has been complete non-compliance in terms of non-appearance or even any request for seeking adjournment on the schedule date of hearing. Thereafter, when the matter was last fixed for hearing on 22.02.2022, the Bench had directed to issue the notice through the ld. DR and in response, a report has been submitted by the ITO, O/o Commissioner of Income Tax-2, ITAT, Chandigarh, stating that as per the directions of the Bench, the hearing notice has been served upon the assessee at the three different addresses which are available on record. However, in spite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng power shareholder is a member or a partner and in which he has at any time during the PY beneficially entitled to not less than 20% of the income of the concern. The share application is just a mask used by the assessee. The paid up share capital was just Rs. 2,37,50,000/- as against Authorized Share Capital Rs. 3,00,00,000/-. The share application money amounting to Rs. 316,65,000/- is lying with the assessee free of interest just as an advance. Assessee has failed to rebut the findings of the AO that share application is lying idle in the books of assessee and no shares were ever issued. The Ld. AO's findings further confirmed when the appellant submits that to meet the fund requirements for rapid expansion of business operation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est free loan advance left parked in the books of the assessee company. Hence, the loan recipient is covered u/s. 56 r.w.s. 2(22)(e) of the Act. The case laws relied by the assessee company do not help him as the facts are distinguishable. Action of AO is confirmed. The Ground of Appeal No. 1 is dismissed....... . 4. In light of above, we do not see any infirmity in the findings of the ld. CIT(A), which are hereby confirmed and the grounds of appeal taken by the assessee is dismissed. 5. In Ground No. 3, the assessee has challenged the action of the ld. CIT(A) in upholding the disallowance of depreciation on sewing machine. In this regard, we find that the ld. CIT(A) has passed well reasoned order taking into consideration the enti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the asset has been used for the purpose of the business of the assessee for as short as one day. It is apparent that the AR of the assessee company has miserably failed to rebut the findings of the AO. These assets have been received at the last day of the financial year. The assessee cannot take undue advantage of the plea that once the assets are merged into the block of assets it loses its identity and the question of actual use of a particular asset in the year should not be relevant for allowing depreciation in respect of the same. Here the AO has given specific findings on the basis of bills produced by the assessee. No positive evidence has been brought on record by the AR of the assessee during assessment or appellate proceedings t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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