9911796707
TMI Blog2013 (5) TMI 798X X X X Extracts X X X X X X X X Extracts X X X X ..... he Assessing Officer by following the order of the Income-tax Appellate Tribunal for the assessment year 2008-09 wherein allowed wastage of 5 per cent. - Decided against revenue. Depreciation at the rate of 50 per cent. on motor car disallowed - Held that:- On perusal of the assessment order, it appears that the Assessing Officer has given no reason as to why the assessee's claim of depreciation at the rate of 50 per cent. is not allowable. Since the disallowance of depreciation claimed is not supported by any reason, the disallowance so made, cannot be sustained. However, it is seen from the order of the Commissioner of Income-tax (Appeals) that the assessee has purchased the motor car on February 26, 2009 which in other words mean tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bullion. In the course of assessment proceedings, the Assessing Officer while examining the audited accounts of the assessee noticed that the assessee has claimed loss of gold and silver in the form of wastage in the process of manufacturing of jewellery. The Assessing Officer when proposed to disallow the claim of wastage in the absence of supporting evidence, the assessee submitted its reply stating therein that it had incurred wastage in gold and silver which was quantified on the basis of the operational sheets for issue and receipt of material from karigars and on the basis of physical stock taken every month for the in-house production. The Assessing Officer also recorded a statement of the managing director of the company in this re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eing unsuccessful before the first appellate authority, carried the matter in appeal before the Income-tax Appellate Tribunal, Hyderabad Bench in I. T. A. No. 1326/Hyd/ 2011. A co-ordinate bench of this Tribunal disposed of the appeal vide order dated December 26, 2011 by allowing the claim of the assessee. The Income-tax Appellate Tribunal held as under : We have heard both the parties and also perused the material available on record. In this case, the Assessing Officer made disal lowance towards wastage on the reason that the assessee did not maintain day to day account of wastage. According to the Assessing Officer the assessee is making entries regarding wastage as per his convenience and no contemporaneous records have been mainta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7,26,790.82 10,90,582.13 6,61,054.93 6,04,977.27 4,38,778.68 6,87,138.28 7,79,499.89 11,56,515.73 7,63,855.81 6,84,396.63 Less : Closing stock 45,128.45 52,709.08 65,933.60 1,02,800.88 79,419.35 64,446.56 Production during the year (including production loss) 3,93,250.23 6,34,429.21 7,13,566.30 10,53,714.85 6,84,436.46 6,19,950.07 Pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax (Appeals) in deleting the addition made by the Assessing Officer by following the order of the Income-tax Appellate Tribunal for the assessment year 2008-09. Accordingly, we uphold the order of the Commissioner of Income-tax (Appeals) on this issue and dismiss the ground raised by the Department. 7. The only other surviving issue in I. T. A. No. 284/Hyd/13 is with regard to the Commissioner of Income-tax (Appeals) allowing depreciation at the rate of 50 per cent. on motor car. During the assessment proceedings, from the depreciation statement filed by the assessee, the Assessing Officer noticed that the assessee had claimed depreciation at the rate of 50 per cent. on vehicles amounting to ₹ 3,32,125. The Assessing Officer b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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