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TMI Blog2016 (5) TMI 968X X X X Extracts X X X X X X X X Extracts X X X X ..... sed by the learned CIT (A) Kota for A.Y. 2008-09. The effective grounds of appeal are as under:- 1 The impugned additions and disallowances made in the order u/s 143(3) of the Act dated 30.12.2010 are bad in law and on facts of the case, for want of jurisdiction and various other reasons and hence the same kindly be deleted. 2. ₹ 17,900/-: The Id. CIT(A) erred in law as well as on the facts of the case in confirming the disallowance of ₹ 17,900/- on account of Tour Travel expenses. The disallowance so made and confirmed by the CIT(A) being totally contrary to the provisions of law and facts of the case, kindly be deleted in full. 3. ₹ 1,35,000/-: The Id. CIT(A) erred in law as well as on the facts of the case in confirming the disallowance of ₹ 1,35,500/- u/s 40(a)(ia) of the Act on account of legal and rent payment because of the alleged non-compliance of TDS provisions. The disallowance so made and confirmed by the CIT(A) being totally contrary to the provisions of law and facts of the case, kindly be deleted in full. 4. ₹ 14,630/-: The Id. CIT(A) erred in law as well as on the facts of the case in confirming the disallowance o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 4,742/-: The Id. CIT(A) erred in law as well as on the facts of the case in confirming the disallowance of ₹ 4,742/- on account of Conveyance expenses on the plea that the said expenditure did not relate to the subjected year. The disallowance so made and confirmed by the CIT(A) being totally contrary to the provisions of law and facts of the case, kindly be deleted in full. 11. ₹ 3,485/-: The Id. CIT(A) erred in law as well as on the facts of the case in confirming the disallowance of ₹ 3,485/- (out of total disallowance of ₹ 6,969/-) on account of Repair Building. The disallowance so made and partly confirmed by the CIT(A) being totally contrary to the provisions of law and facts of the case, kindly be deleted in full. 12. ₹ 22,500/-: The Id. CIT(A) erred in law as well as on the facts of the case in confirming the addition of ₹ 22,500/- (out of total disallowance of ₹ 27,500/-) on account of estimated realizable scrap value relating to raw material. The addition so made and partly confirmed by the CIT(A) being totally contrary to the provisions of law and facts of the case, kindly be deleted in full. 13. ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ho had confirmed the addition under the heads tour and travel expenses of ₹ 17,900/-, which was incurred on account of business tour to Raipur for techno-commercial discussion with NSN for further business with his wife, but no evidence has been submitted by the assessee even before the ld CIT(A). Therefore, he dismissed the assessee s appeal on this ground after considering the assessee s reply that the Director was having heart problem aged 58 years, was required to any attendant. This expenditure was incurred for business expediency. But even before us, the assessee has not filed any evidence regarding the payment and particularly bill or expenditure, therefore, we confirm the addition. 4.1 The ld CIT(A) also dismissed the payment of ₹ 1.35 lacs paid to Shri Ishwar Das as no TDS has been deducted. No evidence was submitted before the ld Assessing Officer. Evidences furnished before the ld CIT(A) was found him additional evidence, which was submitted without any application for additional evidence under Rule 46A of the Income Tax Rules, 1962 (in short the Rules). Earlier this was claimed by the assessee that ₹ 30,000/- was paid as rent for the period 10/12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sting purposes by the assessee. The technology of I.T. is frequently changing, therefore, it becomes obsolete even within a short span of period. Various courts have decided this claim of expense as revenue in nature. Accordingly, we allow the mobile purchase expenses as revenue expenditure. 4.3 The ld CIT(A) confirmed the disallowance of hotel expenses on the ground that they pertained to previous year. The ld AR contended that the expenses were booked on receipt of bill from the employees as the work is done at many places in the India and it is not possible to book according to its period. He has drawn our attention on para No. 9 of page No. 7 of paper book and prayed to allow this ground of appeal. Ld. DR supported the order of the lower authorities. It is a fact that the expenditure pertained to earlier years but bills received by the assessee in the year under consideration. Accordingly, liability is crystallized during the year under consideration. Genuineness of the expenses has not been doubted by the lower authorities, therefore, we allow the assessee s appeal on this ground. 4.4 The ld CIT(A) partly allowed the appeal under the head travelling expenses ROT for & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of valuation papers of work in progress. The ld Assessing Officer observed that the assessee had claimed reduction in value of work in progress of ₹ 18.70 lacs. However, no supporting documents were submitted by the assessee. In absence of supporting documents, the claim of the assessee was not verifiable and hence not allowable. The assessee submitted report of Insurance surveyor and loss assessor in relation to reduction in value of raw material, but no such document was submitted in relation to reduction in value of work in progress. Hence made addition of ₹ 18.70 lacs. 6. Being aggrieved by the order of the Assessing Officer, the assessee carried the matter before the ld CIT(A), who had dismissed the appeal on this ground by observing that no supporting evidence was filed before him. Moreover, when the assessee could get the report of insurance surveyor and loss assessor in estimating the reduction in value of raw material, it could have carried out the same exercise for valuing the work in progress also. The amount of ₹ 18.70 lacs included a sum of ₹ 9.90 lacs, which was the value of FCT Kits. Before the Assessing Officer the assessee claimed that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -11, the assessee has written off huge amount of ₹ 51,50,000/- , which has been duly allowed by the Assessing Officer in scrutiny assessment, identical to this claim. He further relied on the following case laws:- (i) Digital Equipment India Ltd. Vs. DCIT (2006) 103 TTJ 329 (Bang). (ii) Torrent Power Ltd. Vs DCIT (2012) 20 ITR 653 (Ahd. Trib). (iii) Avaya Global Connect Ltd. Vs CIT (2009) 122 TTJ 300 Therefore, he prayed to allow the appeal on this ground. 8. At the outset, the ld DR has vehemently supported the order of the ld CIT(A). 9. We have heard the rival contentions of both the parties and perused the material available on the record. It is undisputed fact that in IT industries technology becomes obsolete frequently, accordingly, the assessee has to take decision to use the items. The assessee is engaged in manufacturing of hybrid micro circuits by upgrading the technology. It is a business decision of the assessee after considering the report from the surveyor, which has been filed before the lower authorities but has not judiciously appreciated by them. In subsequent year, the ld Assessing Officer allowed the identical write off on account of obsol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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