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TMI Blog1993 (5) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... tion (GIDC) under an agreement for a consideration of Rs. 1,45,360 payable in instalments. The AO disallowed the claim when he noted that the assessee had neither paid the full amount of price nor the deed of conveyance stood registered in its favour. The AO held that till the property was conveyed to the assessee, it could not become the owner thereof the claim for depreciation was, therefore, disallowed. In appeal, the ld. CIT(A) referring to the instructions of the CBDT regarding allowance of depreciation on assets acquired under such agreements directed the AO to allow necessary relief to the assessee. 3. The ld. DR argued that the AO was not justified in allowing depreciation without looking into the nature of contract entered into b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es not create in favour of the purchaser any interest in or charge on the allotted property and does not authorise or entitle the purchaser to transfer or assign the alleged property in any manner whatsoever. The purchaser, until the conveyance deed is executed, is given no right or interest in the alleged property whatsoever. Further, for the failure to pay the specified instalments, the purchaser is liable to be evicted in accordance with the prescribed procedure. The purchaser is also entitled to terminate the agreement of his own accord, subject to following the prescribed conditions. Clause 3 of the agreement stipulates that on the purchaser paying full price of the allotted property under the agreement, GIDC is to transfer the purchas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) erred in disallowing Rs. 1,376 by treating the same as penalty under Madhya Pradesh General Sales-tax Act. A perusal of the relevant details revealed that only a sum of Rs. 260 constituted of interest of Rs. 215 under section 17(3)(c)(ii) of the Madhya Pradesh General Sales Tax Act and Rs. 45 as penalty under rule 69A is disallowable. The rest being sales tax and entry tax. The assessee accordingly gets relief of Rs. 1, 116. 8. The next grievance of the assessee is against addition of Rs. 6,500 as unexplained cash credit under section 68. It is argued that the amount received was share application money from assessee-company's Managing Director, Shri Ashok K. Patel and the provisions of section 68 is not attracted. We are unable to accep ..... X X X X Extracts X X X X X X X X Extracts X X X X
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