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TMI Blog2016 (7) TMI 810X X X X Extracts X X X X X X X X Extracts X X X X ..... incomes at a positive figure - Held that:- The action of the AO cannot be appreciated. However, as seen from the orders of ITAT pertaining to earlier years, there are various issues which were sent back to the AO for examination and re-determination. Consequent to those orders, if there are any brought forward losses and (or) un-absorbed depreciation, assessee is entitled to claim set-off and carry forward of the same as the case may be in this year. AO is directed to re-determine the amount and allow the necessary benefit as per the provisions of law. This ground is considered allowed for statistical purposes. Disallowance u/s. 40(a)(ia) - Non remitting of TDS - Held that:- Since the TDS was remitted during the impugned assessment year, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AR filed additional evidence under Rule 46A. The additional evidence submitted was sent to the AO by CIT(A) and the AO was directed to examine the evidence, cause further enquiries as deemed fit and submit his report after giving due opportunity to assessee. 4.1. The AO has sent his remand repot on 23-01-2014 wherein it was stated that though the notices were issued to the assessee calling for details, there was no responses from assessee. After the report, Ld. CIT(A) confirmed the addition by stating as under: "5. It is pertinent to mention that what Assessing Officer called for in remand proceedings is bills/vouchers in support of expenses. What Authorised Representative submitted is mere ledger accounts. From the facts and circumstance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance of depreciation of ₹ 1,54,86,314/- cannot be made. 3. The AO ought to have appreciated the fact that, once the amount of addition towards Block of Assets is entered into the same should be continued from each year unless it is discarded or removed and depreciation should be allowed on that. 4. In this regard we have placed reliance in the case of M/s. Coromandal industries Ltd having ITA No's 287,288,289 and 1512/H/08. 5. The Ld.CIT(A) erred in confirming the order of AO, while disallowing 5% of the expenditure under the head of "Purchase of raw material" which amounts to ₹ 3,76,28,282/- with the contention that the same is abnormal when compared with earlier years. 6. The Ld. CIT(A) erred in c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at any time before or at the time of hearing of the appeal". 6. Ld. Counsel while referring to the orders of the earlier years and prayer for additional evidence submitted that assessee could not present properly before the authorities due to arrest of MD and subsequent Civil/Criminal proceedings and financial difficulties. Assessee is now in a position to substantiate and mainly requested for restoring the issues to the file of the AO for fresh examination. 6.1. Ld. DR however, has no objection for verification as some of the issues were also remitted in earlier years to the file of AO. 7. We have considered the rival contentions and perused the material on record. Ground Nos. 1 & 12 is general in nature and require no adjudication. 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed for statistical purposes. 7.2. Ground Nos. 5 to 9 is with respect to adhoc disallowance of consumption of raw material and personnel cost. This issue has also been adjudicated in assessee's own case for the AY. 2009-10 in ITA Nos. 353/Hyd/2013 & 665/Hyd/2013. The relevant para of the Co-ordinate Bench decision is as under: "16. With respect to consumption of raw material, the CIT(A) has given a finding that increase in material consumption has effected a corresponding increase in circulation revenue. It is the basic principle that when there is a rise in circulation revenue there should be a corresponding increase in material consumption. The consumption of raw material increases on printing more number of copies of printed public ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted during the impugned assessment year, assessee is entitled to claim the deduction of the same amount. The amount was confirmed in assessee's own case for AY. 2009-10 in ITA Nos. 353/Hyd/2013 & 665/Hyd/2013. The relevant para of the said order is as under: "11. The next ground is on the issue of disallowance u/s. 40(a)(ia) of the Act. As it has been admitted by the assessee itself that the TDS has been remitted into Government account on 5.10.2009, we direct the CIT(A) to allow the TDS payment in the next year". Consequent to the above order, the amount is allowable in this year. Accordingly, AO is directed to allow the amount as per the provisions of law. This ground is allowed. 8. In the result, appeal of assessee is allowed for s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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