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TMI Blog2018 (10) TMI 861X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance to the extent of ₹4,39,661/- only during remand proceedings. We accordingly uphold the CIT(A)’s findings granting part relief to the assessee with a rider that same shall not be treated as a precedent in any other case. - Decided in favour of assessee. - ITA No.1951/Kol/2016 - - - Dated:- 12-10-2018 - Shri S.S.Godara, Judicial Member And Dr. A.L. Saini, Accountant Member For The Appellant : Shri Saurabh Kumar, Addl. CIT-SR-DR For The Respondent : Shri Somnath Ghosh, Advocate ORDER PER S.S.Godara, Judicial Member:- This Revenue s appeal for assessment year 2010-11 arises against the Commissioner of Income Tax (Appeals)-6, Kolkata s order dated 22.07.2016, passed in case No.294/CIT(A)-6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in nature. Hence, claiming of the expenditure under the head tools and tackles is not reasonably be taken as established revenue expenditure. The assessee did not give any clarification regarding the nature of goods whether revenue or capital. Moreover, the explanation regarding stock value explained by the assessee only based on estimation which goes against the principle of accounting. Considering the above facts and observation the claim made by the assessee under the head tools and tackles amounting to ₹ 84,11,145/- is entirely disallowed and added to the total income of the assessee. 3.2 During the appellate proceedings, the appellant contended that the tools and tackle were used by the appellant for carrying out specific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lor spares, hardwood plywood etc.: As per list C a) Plywood (6153.84 sqft.), hardwood (745.32 cft) etc. of ₹ 498888/- used wood shuttering/rod binding which is subject to depreciation @ 100% as purely temporary structure as per schedule 1(4). Total bill raised to client of ₹ 120480/-. b) M.S. Chisel 15237 kg. of 548532/-: Fully consumable during underground concreting for piling. Approx 3000 kg of ₹ 109706/- were found in stock as reusable. c) M/s Chisel: Total quantity purchased: 14 no. out of which 11 no. were damaged / stuck up during underground boring of 14000 running metre in rocky soil and only 3 no. found reusable after repairing/modification and hence proportionate value were taken as stock and the it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring the appellate proceeding were forwarded to the AO for his verification and comments with specific direction to verify the same with purchase bills//registers and other details. 3.3 The AO furnished his remand report on 25.05.2016 vide No. Cir.- 24/Hooghly/ remand Report/210-11/16-17/167 dated 23.05.2016, wherein it was reported as under:- As directed, adequate opportunities were extended to the assessee for submission of documents. In response to hearing notices Sri B. Das, CA and Sri T. Laha, Accountant appeared time to time and submitted requisite details. In response to the queries, the assessee submitted photocopies of tore Ledger (Stock Register), Photocopies of purchase vouchers and a physical valuation of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommended addition to the closing stock by ₹ 1,40,200. 3.5 I have considered the facts of the case and the appellant s submissions. I find that the AO disallowed the expenses of tools and tackles of ₹ 84,61,145/- as according to him, the appellant did not furnish any evidence relating to their purchase or usage and some of the tools and tackles were reused showing that the expenditure was capital in nature.. As is evident from the remand report, the AO has not found any specific evidence to confirm the findings in the assessment order that the expenditure was in the nature of capital expenditure. the finding given in the assessment order the expenditure was in the nature of capital expenditure had no concrete basis and no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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