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TMI Blog2014 (8) TMI 904X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue. Estimation after obtaining report from DVO – Held that:- The assessee has constructed the building. The AO did not accept the value shown by the assessee and referred the matter to the DVO, but without rejecting the books of account - The Tribunal held that without rejecting the books of account, addition cannot be made on the basis of D.V.O's report - books of accounts were maintained properly and were never rejected - the order of the Tribunal is upheld – Decided against Revenue. Depreciation on books – Held that:- The assessee is maintaining a library for lending the books on charges - As per Schedule to Income Tax Rules, 100% depreciation on books is permissible - the depreciation @ 100% was rightly allowed by the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee paid the interest @ 10%, but during the assessment year under consideration, the assessee has shown the interest payment @ 18% to 24%. However, the C.I.T.(A.) has restricted the same @ 18%, which was endorsed by the Tribunal. He further submits that the payment of interest @ 18% is in excessive and not permissible as per Section-40A (2)(b) of the Act. He relied on the ratio laid down in the case of Pawan Kumar Agarwal Vs. Acoitc Income Tax Appeal (Defective) No. 25 of 2003 dated 27.08.2012. On the other hand, the learned counsel for the assessee has justified the payment of interest @ 18%. He further submits that no loan was borrowed from the financial institutions. Interest was paid on the basis of the resolution passed by the Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e books of account, addition cannot be made on the basis of D.V.O's report. In the instant case, books of accounts were maintained properly and were never rejected. By keeping in mind the then law and the ratio laid down in the following cases, we find no reason to interfere with the Tribunal's order, who has deleted the addition. (i) C.I.T. Vs. Merrut Cement Company P. Ltd. (2006) 202 CTR 506 (Alld.); (ii) C.I.T. Vs. Star Builders 294 ITR 338 (Guj.); and (iii) Sargam Cinema Vs. C.I.T. (2010) 338 ITR 513 (Supreme Court) The last grievance of the learned counsel for the department is pertaining to depreciation on books. The assessee is maintaining a library for lending the books on charges. As per Schedule to Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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