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TMI Blog2023 (5) TMI 625X X X X Extracts X X X X X X X X Extracts X X X X ..... on when the business was stopped due to temporary lull. Accordingly, we set aside the order passed by CIT(A) on the above said two issues and direct the AO to delete the disallowances. Disallowance sustained by the CIT(A) made out of various expenses - We notice that the assessee did not controvert the finding of the AO that some of the vouchers are supported by self made vouchers. Accordingly, we do not find any reason to interfere with the decision rendered by Ld CIT(A) on this issue. Appeal of the assessee is partly allowed. - ITA Nos. 467/Jodh/2018 - - - Dated:- 5-4-2023 - Shri B. R. Baskaran, Accountant Member And Dr. S. Seethalakshmi, Judicial Member For the Assessee : Shri Gautam Chand Baid-C.A. For the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts and in the circumstances of the case, the Ld. CIT (A) erred in sustaining the disallowance for Rs. 1,00,000/- out of lump sum disallowance made by Ld. AO for Rs. 2,00,000/-. Disallowance so made and sustained may kindly be deleted. 4. The appellant crave liberty to add, amend, alter, modify, or delete any of the ground of appeal on or before its hearing before your honour. 5. The appellant prayed for the justice. 3. Briefly the facts of the case are that the assessee company is engaged in manufacturing of synthetic fabrics on job work basis for other parties. It is also engaged in trading of synthetic fabrics during the year. It filed its e-return on 27.10.2015 declaring total loss of Rs. 1,57,07,558/-. The return wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f other expenses, since some of the expenses were supported by self made vouchers. 5. Being aggrieved by the order passed by the AO, the assessee preferred an appeal before the ld. CIT(A), who concurred with the view taken by the AO in respect of disallowance of remuneration paid to directors and disallowance of depreciation. However, he reduced the adhoc disallowance made out of expenses to Rs.1.00 lakh. Accordingly, the Ld CIT(A) allowed the appeal of the assessee in part. 6. Now the assessee is in appeal. 7. The Ld A.R submitted that the assessee has not completely stopped the business and there was only suspension of business for a temporary period. He submitted that the business has been revived in the succeeding year. Accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 32 of the Income-tax Act could not be granted. Thus, the abovesaid decision has to be seen in the light of the facts and circumstances of the case; hence, the same would not be of any assistance to the assessee. In fact, the learned standing counsel appearing for the Revenue fairly stated before this court that in the decisions reported in CIT v. Southern Petrochemical Industries Corporation Ltd. [2009] 311 ITR 202 (Mad) and CIT v. Southern Petrochemical Industries Corporation Ltd. [2008] 301 ITR 255 (Mad), this court had considered the grant of depreciation even to stand-by machinery. When that being the case, we do not find any justifiable ground to disturb the reasoning of the majority members of the Income-tax Appellate Tribunal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the say of the ld. counsel for the assessee that there being a lull in the business, it cannot be said that the assessee had no intention to carry on business and it is not the case of the Revenue that the assessee has closed out its business activities. 20. The ld. DR supported the findings of the Assessing Officer. It is the say of the ld. DR that the Assessing Officer has considered all the issues raised by the counsel and, therefore, there is no error or infirmity in the findings of the Assessing Officer and the ld. CIT(A). 21. We have given thoughtful consideration to the orders of the authorities below. In our considered opinion, depreciation has been claimed by the assessee on the written down value of the asset which means t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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