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TMI Blog2016 (10) TMI 1348X X X X Extracts X X X X X X X X Extracts X X X X ..... schedule and the composition of the capital work in progress and also as to when the capital was used for business purposes and the sources for the purchase of the capital work in progress. W Assessee has given the schedule of fixed assets wherein the capital work in progress was shown as ₹ 1.65 crores. These details are also available at page 28 of the paper book wherein break-up of the details of capital work in progress was given. Thus, it is seen that the AO had called for details and the assessee has furnished the same before the AO. Therefore, the presumption to be drawn is that the AO has applied his mind to the said details, but has not mentioned anything in the assessment order In the case before us the CIT, though has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee company carrying on the business of Consultancy in Global Education, filed its return of income for the A.Y 2011-12 on 29.09.2011 admitting a total loss of ₹ 1,38,45,782. The return was processed u/s 143(3) of the Act and disallowance of expenditure made u/s 40(a)(ia) for non deduction of tax at source as per the provisions of section 195J of the Act. Thereafter, the loss was reduced to ₹ 99,98,986. Thereafter, the CIT by virtue of the powers vested in him u/s 263 of the I.T. Act, perused the assessment record of the assessee for the A.Y 2011-12 and observed that the AO has allowed (i) depreciation @ 60% on additions made to computers and its peripherals in the depreciation schedule and also (ii) depreciation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O on both the issues. He submitted that though this clearly shows that the AO has made the inquiry, the CIT has held the assessment order to be erroneous only as he was of the opinion further inquiries ought to have been made by the AO. In support of his contentions as above, the learned Counsel for the assessee has placed reliance on the following case laws: (i) Hon'ble Supreme Court in the case of Malabar Industrial Co. Ltd vs. CIT reported in 109 Taxmann.com 66 (ii) Hon'ble A.P. High Court in the case of Spectra Shares Scrips P Ltd reported in 36 taxmann.com 348 (iii) Hon'ble Bombay High Court in the case of CIT vs. Development Credit Bank Ltd reported in 196 Taxman.com 329 (iv) Hon'ble Delhi High Court in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given the schedule of fixed assets wherein the capital work in progress was shown as ₹ 1.65 crores. These details are also available at page 28 of the paper book wherein break-up of the details of capital work in progress was given. Thus, it is seen that the AO had called for details and the assessee has furnished the same before the AO. Therefore, the presumption to be drawn is that the AO has applied his mind to the said details, but has not mentioned anything in the assessment order. As per the judgment of the Hon'ble Telangana A.P. High Court in the case of Spectra Shares Scrips (P) Ltd (Supra), the AO is not required to give detailed reasons for accepting the contentions of the assessee. Further, the Hon'ble Delhi Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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