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TMI Blog2018 (9) TMI 1090X X X X Extracts X X X X X X X X Extracts X X X X ..... being amount of KCC. (2) Addition of Rs. 103226/- for disallowance of depreciation on sumo car. (3) Addition of Rs. 44370/- for various gifts received u/sec. 68. (4) Any other matter with the prior permission of chair." Ground No. 1 is regarding addition on account of KCC. 2. At the time of hearing, the ld. A/R of the assessee has stated at Bar that the assessee does not press ground no. 1 and the same may be dismissed as not pressed. The ld. D/R has raised no objection if the ground no. 1 of the assessee is dismissed being not pressed. Accordingly, ground no. 1 of the assessee is dismissed being not pressed. Ground No. 2 is regarding disallowance of depreciation on sumo car. 3. The assessee has filed the return of income de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he depreciation on the car. However, in the balance sheet as on 31st March, 2010 the assessee has shown the depreciation on the car at Rs. 1,03,226/-. Thus the AO has made the addition of the said amount by taking the said amount of Rs. 1,03,226/- which is considered by the assessee only for the purpose of working out the written down value of the motor car. The assessee has declared the profit @ 17.46% and the AO has not found fault in the profit declared by the assessee under section 44AD. We further note that the profit declared by the assessee is much more than the minimum income to be assessed under the provisions of section 44AD at 8%. Accordingly, in the facts and circumstances of the case when the assessee has filed return of income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 50,000/- under section 56(2)(vii), then the said addition made by the AO is unjustified. 9. On the other hand, the ld. D/R has relied upon the orders of the authorities below and submitted that the provisions of section 56(2)(vii) are not applicable in the case of the assessee as the assessee has failed to establish the claim of gift. Hence when the amount was introduced in the books by the assessee during the year then the AO is justified in making the addition under section 68 of the Act. 10. We have considered the rival submissions as well as the relevant material on record. There is no dispute that the assessee has failed to produce any detail or evidence in support of the claim of gift of Rs. 44,370/- received in cash during the year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gifts received u/sec. 68. (3) Any other matter with the prior permission of chair." Ground No. 1 is regarding addition on account of KCC. 12. At the time of hearing, the ld. A/R of the assessee has stated at Bar that the assessee does not press ground no. 1 and the same may be dismissed as not pressed. The ld. D/R has raised no objection if the ground no. 1 of the assessee is dismissed being not pressed. Accordingly, ground no. 1 of the assessee is dismissed being not pressed. Ground No. 2 is regarding the addition of Rs. 40,314/- under section 68 of the Act on account of gifts received. 13. We have heard the ld. A/R as well as the ld. D/R and considered the relevant material on record. This issue is common and identical to the is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucceed. 17. Before us, the ld. A/R of the assessee has submitted that the AO has not disputed that the assessee has purchased the JCB on 3rd June, 2011 though there was a delay in registration of the said vehicle/JCB with the RTO. However, the assessee has been using this JCB for his business purposes and earning the income during the year under consideration. The ld. A/R has further pointed out that the RTO has levied a penalty of Rs. 5,708/- on account of delay in registration and, therefore, the registration was granted by the RTO with effect from 11th June, 2011. Hence the ld. A/R has submitted that the assessee is eligible for depreciation on the JCB for full year instead of 50% restricted by the authorities below. 18. On the other h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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