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TMI Blog2019 (2) TMI 1060X X X X Extracts X X X X X X X X Extracts X X X X ..... are of such a nature that these can be used even after the purchase. There is no need to get a certification of installation from third party particularly when Plant Manager of the assessee certified that installation have been done of the above assets in manufacturing plant. It, therefore, appears that A.O. without any justification denied depreciation and additional depreciation to the assessee. CIT(A), therefore, rightly allowed the same in favour of the assessee. Disallowance of applying the provisions of Section 40A(2)(a) - charging of interest on the unsecured loans taken from the specified persons u/s 40A(2)(b) - Held that:- No merit in this ground of appeal of Revenue. There is difference between loan taken from Banks and unsecu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in law and in facts in deleting the addition amounting to ₹ 52,84,106/- made by A.O. on account of disallowance of additional depreciation on new plant machinery. 2. On the facts and circumstances of the case, the Ld. CIT(A) has erred in law and in facts in deleting the addition amounting to ₹ 39,63,080/- made by A.O. on account of disallowance of normal depreciation. 3. It is noted in the impugned Order that assessee had claimed additional depreciation on the assets purchased and put to use during the year under appeal. The details of the additional depreciation claimed is given in para-2 of the assessment order which is also reproduced in the impugned order which are in respect of plant and machinery, Air Condit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssets attached with the balance sheet and filed before the A.O. Copies of the account of fixed assets on which depreciation and additional depreciation have been claimed by the assessee are placed in the paper book. On going through the accounts of the fixed assets, it can be appreciable that most of the assets were purchased well before March 2011 and there was sufficient time for installation and putting them to use. The Ld. CIT(A) considering the explanation of assessee noted that the description of items as per list of the assets above shows that these are of such a nature as to be used automatically upon purchase and would not be of the kind that merits an installation certificate of a company. In any case, if the AO doubted the instal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1961. 5.1. On ground No.3, it is noted in the impugned Order that assessee had paid interest @ 15% per annum to the persons covered under section 40A(2)(b) of the I.T. Act. The interest paid to unsecured loans cannot be compared with the loan from banks. As the bank loans are fully secured, there is no security for unsecured loans taken from relatives. Further, there are no other formalities as in case of bank loans. The Ld. CIT(A) referred to decision of ITAT, Ahmedabad Bench in the case of Shri Hitesh Narendrabhai Shah (HUF) vs., ITO in ITA.No.2370/Ahd/ 2010 in which it was accepted the rate of interest of 15% paid to persons covered under section 40A(20(b) of the I.T. Act, is reasonable. In an another decision of the ITAT Ahemd ..... X X X X Extracts X X X X X X X X Extracts X X X X
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