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2019 (8) TMI 1055 - AT - Income TaxUnexplained credit balance - HELD THAT - As submitted that these balances relate to earlier years and assessee has repaid the amount in subsequent years. This fact, in our view, requires verification at the end of the A.O. Hence, the issue of credit balance related to Navin Com. Bhanpura, Maa Annapurna Traders, Pachor and Ajay Prahalad Aggarwal, Garoth is restored to the file of the A.O. for decision afresh. A.O. to verify claim of the assessee whether credit balances are related to earlier years and those have been repaid in the subsequent years. If this fact is found to be correct, the A.O. would delete the additions. These grounds of the assessee s appeal are allowed for statistical purposes. Disallowance of depreciation claimed on vehicles for want of log book - HELD THAT - As stated that both the A.O. and the CIT(A) failed to appreciate that depreciation allowance is a statutory allowance and no disallowance could have been made by the A.O. specially without there being any positive evidence of personal use of vehicles by the authority. D.R. supported the orders of the authorities below and submitted that the claim of depreciation is made by the assessee. It was required to demonstrate that the vehicle has been used wholly and exclusively for the business purposes. In the absence of such evidence, it cannot be inferred that the vehicle was not used for personal use. The assessee has not brought any material on record suggesting that the vehicle was used exclusively for the business purposes. In the absence of such evidence, the inference drawn by the authorities below is correct. No interference is called for. This ground of the assessee s appeal is rejected.
Issues Involved:
1. Timeliness of assessment order and notice of demand. 2. Violation of principles of natural justice in assessment proceedings. 3. Addition of difference in balances of creditors. 4. Disallowance of depreciation claimed on vehicles. 5. Charging of interest under sections 234B and 234C of the IT Act. Issue 1: Timeliness of Assessment Order and Notice of Demand The appellant contended that the assessment order and notice of demand were not passed within the prescribed time limit, rendering them bad in law. However, the appellant failed to provide evidence to support this claim. The tribunal rejected this ground due to lack of substantiation by the appellant. Issue 2: Violation of Principles of Natural Justice The appellant raised concerns about the assessment proceedings being conducted in violation of principles of natural justice, citing lack of information sharing, cross-examination opportunities, and procedural irregularities. However, as the appellant did not present arguments or evidence to support these claims, the tribunal dismissed this ground of appeal. Issue 3, 4, 5: Addition of Difference in Balances of Creditors and Disallowance of Depreciation Regarding the addition of unexplained credit balances of various creditors and disallowance of depreciation claimed on vehicles, the tribunal found merit in the appellant's argument that these balances related to earlier years and had been repaid in subsequent years. Consequently, the tribunal remanded these issues back to the assessing officer for verification and directed deletion of the additions if the claims were found to be valid. Issue 6: Charging of Interest The tribunal considered the charging of interest under sections 234B and 234C of the IT Act as consequential and upheld the decision accordingly. Conclusion The tribunal partly allowed the appeal for statistical purposes, directing a reevaluation of the issues related to unexplained credit balances of creditors and disallowance of depreciation, while upholding the charging of interest under the IT Act. The tribunal emphasized the importance of providing substantiated arguments and evidence to support claims during assessment proceedings. This detailed analysis covers the key issues raised in the legal judgment, providing a comprehensive overview of the tribunal's decision on each matter.
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