9911796707
TMI Blog2019 (3) TMI 279X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee’s own case for Assessment Year 2010- 11 had allowed the claim of the assessee as held not disputed the factum of the assessee having actually incurred these expenses for the purpose of its business. Simply because the business receipts are less, cannot be a reason to disallow the expenditure incurred otherwise for the purpose of business Depreciation being 50% of depreciation on plant and machinery, vehicles and other items - Depreciation claim against the income from Fun & Fair - HELD THAT:- Once there are assets including Plant and machinery, vehicles, computers, etc. which I are being used for the purpose of business from earlier years, the A.O. cannot disallow depreciation on such assets simply by presuming that such assets must not have been used for the purpose of business - unable to appreciate as to how his business under the given circumstances can be carried on without the plant and machinery, vehicle, computers, etc., all of which are necessary items for carrying on the business activity. Since the learned CIT(A) upheld action of the AO by following the order of his predecessor for Assessment Year 2011-12 and since the Tribunal has allowed the claim of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re customers. So far as A-39 Mohan Co-operative Indl. Estate is concerned, it was submitted that the same is let out and repair expenses was claimed inadvertently. So far as the other two properties are concerned, it was submitted that these are the registered office and administrative office of the company. 4.1 However, the learned CIT(A) was also not satisfied by the argument of the assessee. He observed that the assessee himself had admitted that the expenses of let out premises should be disallowed. So far as the expenditure on repairs of the self occupied properties are concerned, since the assessee did not furnish any evidence in the form of bills/vouchers to substantiate the same or to establish that the expenses were of revenue and not capital in nature, the learned CIT(A) disallowed the claim. 5. Aggrieved with such order of the learned CIT(A), the assessee is in appeal before the Tribunal. 6. We have considered the rival arguments made by both the sides and perused the orders of the authorities below. We find identical issue had come up before the Tribunal in assessee s own case in the Assessment Year 2010-11. The Tribunal restored the issue to the file of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing a sum of ₹ 14,28,000/- on account of Other expenses. 9. Facts of the case, in brief, are that the AO during the course of assessment proceedings observed that the assessee has claimed other expenses amounting to ₹ 58,08,929/- excluding repair and maintenance of building. These expenses relate to advertisement and publicity, electricity charges, insurance charges printing and stationary charges, donation, brokerage etc. Out of these expenses, the assessee company had added 50% of the expenses under the head donation and service tax additional demand. However, he could not relate the balance expenses amount of ₹ 57,12,003/- for any particular activity. Since the assessee could not explain as to how these expenses are allowable as business expenses, the AO disallowed an amount of ₹ 14,28,000/- on an adhoc basis being 25% of such expenditure. In appeal the learned CIT(A) following his order for Assessment Year 2011-12 upheld the action of the AO. Aggrieved with such order of the assessee is before the Tribunal. 10. After hearing both the sides, we find the AO disallowed 25% of other expenses on adhoc basis in absence of any explanation by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciation amounting to ₹ 23,27,656/- being 50% of depreciation on account of plant and machinery, vehicles and other items on which depreciation has been claimed. In appeal, the learned CIT(A) upheld the action of the AO. Aggrieved with such order of the CIT(A), the assessee is in appeal before the Tribunal. 14. We have considered the rival arguments made by both sides and perused the orders of the authorities below. We find the AO disallowed depreciation of 23,27,656/- being 50% of depreciation on plant and machinery, vehicles and other items which has been upheld by the CIT(A). We find identical issue had come up before the Tribunal in assessee s own case in the immediately preceding assessment year. The Tribunal in ITA No. 5385/Del/2014 order dated 30.11.2017 has allowed the claim of the assessee by observing as under:- 16. We have heard the rival contentions and perused the material available on record. At the outset, we find that similar issue has been made in ITA No. 5384/Del/2014 in the own case of the assessee wherein the Hon ble has decided the issue as under:- 8. After considering the rival submissions and perusing the relevant material on record, it is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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