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TMI Blog2010 (3) TMI 1184X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax Act, 1961 (hereinafter referred to as 'the Act') vide his orders dated 28-1-2005 for the same assessment year i.e. 2003-04. 2. The first common issue in these two appeals of the assessee is as regards to the order of CIT(A) in confirming the action of Assessing Officer in disallowing the claim of depreciation. The facts and circumstances are exactly identical in both the cases, hence, we will decide the common issue by taking the facts from ITA No.866/Ahd/2007 in the case of M/s. Siddharth Corporation. The ground regarding this issue reads as under:- "(1) The AO has erred in making disallowance of ₹ 10,59,964 out of depreciation claim of ₹ 16,42,863 in the return of income and while making the disallowance the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... action of the Assessing Officer against the disallowance of depreciation at ₹ 10,59,964/- the assessee preferred appeal before CIT(A). The CIT(A) confirmed the action of Assessing Officer. The assessee, aggrieved by the order of CIT(A), preferred second appeal before us. 4. Before us, Ld. Counsel for the assessee Shri, B. Soparkar filed copy of Tribunal's order for the assessment year 1999-00 to 2001-02 in ITA No.959-961/Ahd/2005 dated 01-03-2005, whereby the Tribunal has quashed the rectification order passed u/s.154 by the Assessing Officer thrusting upon the depreciation on the assessee. Ld. counsel for the assessee further stated that once the depreciation is not allowed in these years, the assessee was to carry forward the WDV, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment and not the amount which ought to have been allowed to the assessee. It is the actual depreciation allowed to the assessee which only can be reduced for ascertaining the WDV and not the amount which is notionally allowed to the assessee. Thus, in the absence of any material brought before us to show that any remedial measure was taken by the Revenue in the earlier assessment years to actually allow the depreciation to the assessee in the year in which the assessee has himself not claimed such depreciation, in our considered view, the notional amount cannot be reduced to ascertain the WEV as per the provisions of section 43(6) of the Act. We, therefore, set aside the orders of the lower authorities and allow the depreciation of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee has continuing business relationship with these customers in whose account written off has been made and claimed as bad debt. The AO also observed that the assessee has business transaction with these parties since long and the discount, kasar or commission should have been written off in the concerned year in which the customers actually took discount by making short payment. The AO disallowed the claim of the assessee. Aggrieved, the assessee preferred appeal before CIT(A). The CIT(A) confirmed the action of the AO by observing in para-29 of his appellate order as under:- "29. I have considered the submissions of the appellant, arguments of the AR as well as the findings of the AO in the assessment order. There is a force in the ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is as on account of discount, kasar and commission deducted by their customers from their payment made over a period of years. These are not bad debts as such but these are expenses of business and allowable. But the Assessing Officer has to examine the issue, whether these are crystallized in this year, or not. In principle, the expenses are allowable but the AO has to verify, in which year these have crystallized. In view of this, we set aside this common issue of the assessee's appeals to the file of AO. This common issue in both the appeals of assessee is allowed for statistical purposes as indicated above. 10. The next common issue in these appeals of the assessees is as regards to confirmation of disallowance of vehicle and telephon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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