9911796707
|
Home
Issues Involved:
1. Validity of assessment u/s 153A. 2. Claim of depreciation as a cash in-flow. 3. Levy of interest u/s 234A, 234B, and 234C. Summary: Validity of Assessment u/s 153A: In ITA No. 30/PN/2013, the assessee challenged the validity of the assessment completed u/s 143(3) instead of u/s 153A or 153C for the assessment year 2007-08, arguing it was without jurisdiction. The Tribunal held that the assessment was completed within the time specified u/s 153B(1)(b) and based on seized material, thus there was no infirmity in the assessment order. Consequently, the ground was dismissed. Claim of Depreciation as a Cash In-Flow: The main issue across multiple appeals was whether depreciation allowable under Section 44AE could be considered as a source of cash in the cash-flow statements to explain investments found during a search. The Tribunal acknowledged that depreciation is a non-cash expense and could, in principle, be considered as cash available. However, due to the lack of adequate material to substantiate the exact amount of cash available, the Tribunal directed the Assessing Officer to allow credit for 40% of the depreciation claimed by the assessee in the cash-flow statements and to re-compute the total income accordingly. This decision was applied consistently across all related appeals. Levy of Interest u/s 234A, 234B, and 234C: The issue of interest levied u/s 234A, 234B, and 234C was deemed consequential and dependent on the final computation of income after considering the Tribunal's directions. Result: All appeals were partly allowed, with the Assessing Officer directed to re-compute the total income by considering 40% of the depreciation as cash in-flow and to re-assess the interest levied accordingly.
|
