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TMI Blog2020 (11) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... round raised by the assessee is allowed. - I.T.A. No. 315/ALLD/2017 - - - Dated:- 6-11-2020 - SHRI VIJAY PAL RAO, JUDICIAL MEMBER For the Assessee : Shri Praveen Godbole, Advocate For the Revenue : Shri A.K.Singh, Sr.DR ORDER This appeal by the assessee is directed against the order dated 20-09-2017 of the Commissioner of Income Tax(Appeals)-Allahabad for the AY.2012-13. In this appeal, the assessee has raised the following Grounds: 1. That in any view of the matter the assessment framed u/s 143(3) of the income tax act and vide order dated 12/02/2015 the income so determined at ₹ 24,80,470/- as against the returned income of ₹ 14,67,720/- is bad both on the facts and in law. Therefore the declared ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... records of the assessee are unjustified, incorrect, illegal and contrary to the actual facts of the case, hence the addition as made by assessing officer and confirmed by CIT(A) is highly unjustified. 6. That in any view of the matter the addition or ₹ 3,218/- as made on account of alleged interest received on income tax refund in highly objectionable and illegal in the facts and circumstance of the case. 7. That in any view of the matter disallowance of ₹ 7,30,134/- as made under the head depreciation as per para 5 of the assessment order is highly unjustified and illegal in the eyes of law because the assessing officer failed to appreciate the facts of the case correctly and even no proper opportunity of being hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8-09-2012, declaring total income at ₹ 14,68,720/-. 4. During the course of scrutiny assessment, the Assessing Officer noted that the assessee has declared Net Profit @5.09%, which in view of the Assessing Officer was on the lower side. The Assessing Officer also rejected the Books of Accounts of the assessee by invoking the provisions of Section 145(3) of the Act and then proposed to estimate the income of the assessee by enhancing the Net Profit to 6% as against the declared Net Profit of 5.09%. After estimation of the income by adopting Net Profit @6%, the Assessing Officer has also proceeded to disallow the depreciation on the ground that one of the trucks purchased during the year under consideration was not to put to use and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rged in the profit and loss account should again be added back to the profit. This example illustrates how the contention of the Revenue, that Section 40(b) makes a difference in the situation, is untenable. In our considered opinion, the answer to the question has to be in the negative and in favour of the assessee . 6. Once the Assessing Officer has estimated the income by adopting the Net Profit, then scope of further disallowance on account of depreciation is ruled out. Hence, the disallowance of depreciation by the Assessing Officer is highly arbitrary and inappropriate and the same is liable to be deleted. Ground No.7 raised by the assessee is allowed. 7. In the result, the appeal of assessee is partly allowed. Order pronou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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