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2018 (1) TMI 138 - AT - Income TaxDisallowance of brought forward depreciation.the relevant details are not before us and the determination of the quantum of unabsorbed depreciation to be allowed to be set off has to be necessarily done by the authorities below. Accordingly we restore the issue of unabsorbed depreciation to the file of the Ld. CIT (Appeals) to be decided afresh after due examination of the facts and relevant details and also considering the ratio of the judgments of the Hon ble High Court of Delhi in the cases of CIT vs Kei Industries Ltd. 2015 (3) TMI 618 - DELHI HIGH COURT and CIT v. TEI Technologies (P) Ltd (2012 (9) TMI 47 - DELHI HIGH COURT ) and after giving due opportunity to the assessee to present its case. We also direct the assessee to cooperate with the proceedings before the Ld. first appellate authority and to submit all the relevant details when required to do so failing which the Ld. first appellate authority will be at liberty to decide the issue on merits. Disallowance of commission - Held that - A perusal of the impugned order shows that the Ld. CIT (Appeals) had raised the query on 11/03/2013 requiring the assessee to furnish the details by 18/03/2013 which was not complied by the assessee. The impugned order was passed on 22/03/2013. Thus the assessee did not have ample time to submit the details as required by the Ld. first appellate authority. Accordingly in the interest of justice we deem it fit to restore this issue also to the file of the Ld. CIT (Appeals) with the direction to examine it afresh after calling for the required details from the assessee and after giving due opportunity to the assessee. We also direct the assessee to cooperate with the proceedings before the Ld. first appellate authority and to submit all the relevant details when required to do so failing which the Ld. first appellate authority will be at liberty to decide the issue on merits. Accordingly this ground of the assessee also stands allowed for statistical purposes. Disallowance on account of agriculture expenses - Held that - CIT (Appeals) on the ground that nothing was brought on record by the assessee during the first appellate proceedings to rebut the observations of the AO. In the interest of justice we deem it fit to restore this issue also to the file of the Ld. CIT (Appeals) with the direction to examine it afresh after calling for the required details from the assessee and after giving due opportunity to the assessee. We also direct the assessee to cooperate with the proceedings before the Ld. first appellate authority and to submit all the relevant details when required to do so failing which the Ld. first appellate authority will be at liberty to decide the issue on merits. Accordingly this ground of the assessee also stands allowed for statistical purposes.
Issues:
1. Disallowance of brought forward depreciation 2. Disallowance of commission expenses 3. Disallowance of agriculture expenses Issue 1 - Disallowance of Brought Forward Depreciation: The Appellate Tribunal ITAT DELHI addressed cross-appeals for AY 2009-10 concerning the disallowance of brought forward depreciation. The Revenue challenged the restriction of disallowance to ?87,92,149 by the Ld. CIT(A), as opposed to the ?4,19,90,966 disallowed by the AO. The Tribunal noted that the AO disallowed carry forward of depreciation from AY 2000-01 to 2009-10 and unabsorbed depreciation up to AY 01-02 totaling ?1,96,32,702. The Ld. CIT(A) allowed partial relief but did not consider the amendment to section 10B of the IT Act correctly. Referring to judgments of the Delhi High Court, the Tribunal restored the issue to the Ld. CIT(A) for fresh examination, emphasizing the need to consider relevant details and judgments before reaching a conclusion. The Tribunal directed the assessee to cooperate and submit necessary details for proper adjudication. Issue 2 - Disallowance of Commission Expenses: The assessee challenged the disallowance of commission amounting to ?24,39,930. The Ld. CIT(A) confirmed the addition, citing the absence of an agreement between parties and lack of details on services rendered by commission recipients. The Tribunal observed that the assessee was not given ample time to submit required information. In the interest of justice, the issue was restored to the Ld. CIT(A) for fresh examination, with a directive for the assessee to cooperate and provide necessary details. Issue 3 - Disallowance of Agriculture Expenses: Regarding the disallowance of ?30,117 for agriculture expenses, the Ld. CIT(A) upheld the disallowance due to the absence of evidence to counter the AO's observations. The Tribunal deemed it fit to restore this issue to the Ld. CIT(A) for reevaluation after obtaining required details from the assessee. The Tribunal directed the assessee to cooperate in the proceedings and submit relevant information. In conclusion, the Appellate Tribunal allowed both appeals for statistical purposes, emphasizing the need for proper examination and cooperation from the assessee in addressing the issues raised. The judgments of the Delhi High Court were highlighted as crucial in determining the outcomes of the appeals.
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