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TMI Blog2003 (7) TMI 293X X X X Extracts X X X X X X X X Extracts X X X X ..... lity has arisen during the year under appeal on receipt of bill. Therefore, we decline to interfere with the order of the learned CIT(A). Depreciation - The learned CIT(A) had rightly held that items mentioned at the assessment order fall under the category of plant and machinery and since each item was costing less than Rs. 5,000 the AO was directed to allow 100 per cent depreciation in respect of these items. We are of the opinion that the items mentioned at p. 3 of the assessment order fall under the category of plant and machinery and the learned CIT(A) has rightly taken recourse to first proviso to s. 32(1) of the IT Act which says provided that where actual cost of any machinery or plant does not exceed five thousand rupees, the actua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decline to interfere with the order of the learned CIT(A). 3. Ground No. (ii)--Allowing of relief of Rs. 10,084 out of disallowance of Rs. 20,084 made in respect of telephone expenses. We have heard the rival submissions. We have also perused the record. The AO has discussed the issue at p. 6 of his assessment order. The assessee had claimed Rs. 1,00,419 on account of telephone expenses in the P&L A/c. The expenses include those incurred at the residence of one of the partners at Rs. 13,808. Therefore, the AO had disallowed 1/5th of such expenses. The learned CIT(A) has discussed this issue at p. 3 of his order. After having considered the facts of the case, he restricted the disallowance made by the AO to Rs. 10,000 and allowed a relief ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allow 100 per cent depreciation in respect of these items. We are of the opinion that the items mentioned at p. 3 of the assessment order fall under the category of plant and machinery and the learned CIT(A) has rightly taken recourse to first proviso to s. 32(1) of the IT Act which says "provided that where actual cost of any machinery or plant does not exceed five thousand rupees, the actual cost thereof shall be allowed as a deduction in respect of the previous year in which such machinery or plant is first put to use by the assessee for the purposes of business or profession". We, therefore, decline to interfere with the order of the learned CIT(A). 6. Direction to allow 100 per cent depreciation on automatic voltage controller and UP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade by the AO and sustained by the learned CIT(A) is somewhat excessive. It is deemed fit to disallow such claim to 1/6th of the total claim to meet the ends of justice. 10. Ground No. 3--Partial relief of Rs. 1,000 out of Rs. 3,000 in general expenses. The AO has disallowed a sum of Rs. 3,000 out of general expenses. The AO found that it was not possible to verify such expenses, being petty in nature as well as involving such items which may not be related to business. The learned CIT(A) considered it reasonable to sustain Rs. 2,000 and allowed a relief of Rs. 1,000. 11. After heaving considered the facts of the case, we find that the AO had not pointed out any specific item which were of disallowable nature. The learned CIT(A) has also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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