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TMI Blog2019 (11) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... n allowed. Be it as it may, the entire exercise is revenue neutral when seen holistically over years and therefore no adverse inference is required to be drawn. The action of the Revenue authorities is accordingly set aside and the claim of the depreciation is allowed. As regards claim towards transport and labour charges, it is submitted on behalf of the assessee that it has claimed the aforesaid expenses as revenue item whereas the Revenue has capitalized the same to the cost of the new Loom as same has been incurred for the purposes of transportation of new Looms to the factory premises. We do not find error in the action of the Revenue for capitalization of transport expenses. Having regard to the fact that transport and labour ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing in mind the method of accounting as well as past practice. During course of assessment providing and before CIT(A) we had given full data and explanation with regard to shortage and the addition by Assessing Officer being on presumption and guess work and only on one sole instances the entire addition of ₹ 4,85,834/- deserves to be deleted. 2) The CIT(A) has also erred in confirming addition of ₹ 2,35,980/- added by the Assessing Officer as excessive shortage in Lab Testing. Your Appellant has been maintaining regular and proper books of accounts duly Audited and the shortage declared and claimed is fair and reasonable keeping in mind the method of accounting as well as past practice a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The learned AR thus submitted that he does not seek to press the grounds concerning excessive shortage in production of gray hose ₹ 4,85,834/-, excessive shortage in Lab Testing ₹ 2,35,980/- and Research Development expenses ₹ 75,000/-. In view of the assertions made on behalf of the assessee Grounds Nos. 1, 2 3 are dismissed as not pressed. 4. We shall now advert to Ground No.4 which concerns claim of depreciation of ₹ 6,04,563/- on purchase of new Weaving Looms. We have considered the rival submissions on the issue. It is claimed on behalf of the assessee that new Weaving Looms were installed and put to use before the end of the financial year as pointed out before the lower authorities. Conse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs and therefore no adverse inference is required to be drawn. The action of the Revenue authorities is accordingly set aside and the claim of the depreciation of ₹ 6,04,563/- is allowed. 5. As regards claim of ₹ 88,170/- towards transport and labour charges, it is submitted on behalf of the assessee that it has claimed the aforesaid expenses as revenue item whereas the Revenue has capitalized the same to the cost of the new Loom as same has been incurred for the purposes of transportation of new Looms to the factory premises. We do not find error in the action of the Revenue for capitalization of transport expenses. Having regard to the fact that transport and labour charges form part of the actual costs of ne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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