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TMI Blog2012 (11) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... e in salary disallowed by the A.O. is justified - against assessee. Disallowance of depreciation - Held that:- Assessee has not furnished the purchase bills in respect of the assets on which depreciation is claimed by it. As the assessee could not establish both of these aspects that it owned the asset in question which was used by it for its business purpose disallowance of depreciation is warranted - against Assessee. - I.T.A. No.1432/Ahd/2009 - - - Dated:- 12-10-2012 - SHRI MUKUL KUMAR SHRAWAT, AND SHRI A. K. GARODIA, JJ. Appellant by: Shri Mukund Bakshi, AR Respondent by: Shri Albinus Tirkey, Sr. DR ORDER PER SHRI A. K. GARODIA, AM:- This is assessee s appeal directed against the order of Ld. CIT(A) III, Baro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidered the rival submissions, perused the material on record and have gone through the orders of authorities below and the decision of the Tribunal cited by the Ld. A.R. of the assessee. In that case, it is noted by the tribunal that the assessee has Rs.2.13 crores as capital and interest free sundry creditors whereas the assessee has advanced a sum of Rs.49.47 lacs to his sister concern without interest and hence, the same is fully covered with interest free capital available with the assessee and, therefore, it was held that no disallowance of interest is called for. In the present case also, we find that the interest free advances given to three persons is fully covered by the interest free funds available with the assessee in the for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... signation, salary drawn etc. The salary was also given by cash, therefore no verification possible. The increase in salary is almost 75% over one year which is quite extra ordinary. The reason given for increase in salary is that the same was for increase in profit. However, the profit during the year is just Rs.8.41 lacs on which increase in salary of Rs.9.39 lacs is not justified. In the absence of any details and the fact that payments were made in cash, it is held that the appellant has not discharged the onus to establish the genuineness of the expense. It is held by Hon. Apex Court in the case of Calcutta Company Ltd, 19 ITR 191 that onus to establish the genuineness and business purpose of the expense is on the appellant only. Sinc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely in disregard to facts available and bad in law is prayed to be allowed as such. 4.1 On this issue also, the Ld. A.R. reiterated the same arguments which were raised by him before Ld. CIT(A). Ld. D.R. supported the order of Ld. CIT(A). 4.2 We have considered the rival contentions and we find that this issue was decided by Ld. CIT(A) as per para 4.3 of his order which is reproduced below: I have considered the submissions of the counsel and facts of the case. It is not in dispute that the purchase bills for assets amounting to Rs.1,18,040/- are not in the name of the appellant. In the absence of purchase bill, the movable assets cannot be said to be owned by the appellant. In the absence of any details submitted to the Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X
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