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Issues involved: Appeal against the order of Commissioner of Income-tax (Appeals) involving deletion of depreciation, addition of current repairs, disallowance of transportation charges, and loss on sale of mutual fund.
Deletion of Depreciation on Moulding Box and Pattern: The Revenue appealed against the deletion of addition made on account of disallowance of depreciation on Moulding Box and Pattern. The assessee claimed 100% depreciation on moulding boxes used for casting due to their short life span. The AO allowed depreciation at 25%, but the CIT(A) accepted the assessee's contention. The ITAT referred to a previous case where it was held that the correct rate of depreciation must be applied each year, setting aside the order and directing the AO to re-examine the issue. Addition of Current Repairs and Written Down Value: The Revenue challenged the direction to allow addition of certain amounts to moulds as current repairs and to consider written down value claimed as revenue repairs. The CIT(A) directed the AO to allow depreciation on new additions to fixed assets without verifying their actual use. The ITAT set aside the order, instructing the AO to readjudicate the issue in accordance with law and previous observations. Disallowance of Transportation Charges: The Revenue contested the deletion of addition made on account of disallowance of transportation charges. The ITAT set aside the order and directed the AO to re-adjudicate the issue, providing the assessee with an opportunity to present all evidences. Loss on Sale of Mutual Fund: The Revenue objected to the direction to allow loss on sale of mutual fund. The ITAT found that additional evidences were admitted during appellate proceedings without allowing the AO to examine or rebut them, violating Rule 46A. The order was set aside, and the matter was restored back to the AO for re-adjudication in accordance with law. In conclusion, the Revenue's appeal was deemed to be allowed for statistical purposes.
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