9911796707
TMI Blog2024 (2) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee company, the Respondent herein, is engaged in the manufacture of high-pressure seamless cylinders. Search and seizure operations were conducted in the group concerns of assessee on 6th September 2007. During the course of assessment proceedings, the Investigation Wing found and seized incriminating material and found discrepancies in the construction account of plant and procurement of steel. A disclosure statement of Shri. Nitin Shah, Director of assessee company revealed that an amount of Rs. 5.36 crores was shown in his returns to cover an amount of Rs. 3.51 crores capitalized in assessee company and another sum of Rs. 1.82 crores to cover other issues. According to the Department, it was revealed during the pre-search investigati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the suppliers and Bogus Purchases respectively, capitalized in the books of account, the assessee company was not eligible for depreciation on the said amounts?" 6.2 "Whether on the facts and in the circumstances of the case and in Law, the Hon'ble ITAT failed to consider when Shri. Nitin M. Shah admitted during the course of search u/s 132(4) of the Act, as recorded by the ITAT in para 3 of the order, that he will not claim depreciation on amount of Rs. 3,13,07,498/- and offered the said amount as part of disclosure of Rs. 5 cr., in his return of income, he ought to have withdrawn claim of depreciation on the above amount in the return of income of the assessee company?" 6.3 "Whether on the facts and in the circumstances of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 3,13,07,498/- and offered the said amount as part of disclosure of Rs. 5 crores shown in his return of income, he ought to have withdrawn his claim of depreciation on the said amount. 6. Heard Mr. Suresh Kumar, learned Counsel appearing for the Revenue and perused the impugned order. The impugned order clearly indicates that the Tribunal has analysed the facts of the case in detail. The Tribunal has examined the documents produced by the assessee including ledger extracts of the parties, confirmation from the parties, bank statements and certificate from the registered valuer showing construction of a building indicating procurement of steel. Payments for the same were made by cheque and the capitalization was denied solely based on a s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h action nor in the investigations during assessment proceedings. The AO had made no enquiry in this regard and had only relied upon the statement of assessee made during the search action that in these types of transactions, no evidence generally is available. Thus, there was no explanation from the department to clarify as to what prompted assessee to make such incriminating declaration in respect of income from commodity transactions. The Tribunal has also noted that there was no explanation as to why the AO had not made any enquiry in this respect during the assessment proceedings. On the basis of facts, and documents before it, the Co-ordinate Bench of Tribunal thus held that there was no infirmity in the order of CIT(A) in that matter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the coordinate Bench has already considered the issue in group concerns case, we allowed to these interconnected issues in assessee's appeal directing the AO to allow capitalization on both the counts. Accordingly, these two interconnected issues of the assessee's appeal are allowed." 9. Considering the observations and findings of the Tribunal based on a factual appreciation of the case, there is no enunciated legal position which needs reconsideration, alteration, modification or clarification or any need to resolve an apparent conflict between a difference in viewpoints being that of the AO and the CIT(A) as against that of the ITAT. The entire order of AO is based merely on the statement of the Director of assessee without summonin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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