ACIT, CIRCLE-2(1), SAMBALPUR, SAMBALPUR vs. M/S. DIVAKAR ENGINEERING PVT. LTD., SAMBALPUR
What did the Tribunal hold?
The Tribunal upheld the CIT(A)'s deletion of depreciation disallowance. However, it remanded the issues of share application money and sundry creditors back to the Assessing Officer for fresh verification.
What were the facts?
The assessee claimed higher depreciation on hydra machines, treated share application money as unexplained cash credit, and had a difference in sundry creditors. The Assessing Officer disallowed depreciation, added share application money, and added the sundry creditor difference to income.
What were the issues?
Whether the assessee is eligible for higher depreciation on hydra machines and whether share application money and sundry creditor balances were genuine.
Which sections of the Income-tax Act were involved?
Section 194C,Section 194-I,Section 68,Section 133(6),Section 143(2),Section 142(1),Section 131(1)(d)
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- Gujco Carriers v. CIT4 citing122 Taxmann 206 · 2002 · HC · Read judgment
Income Tax Appellate Tribunal, CUTTACK BENCH, CUTTACK
Before: S/SHRI N.S SAINI & PAVAN KUMAR GADALE
Heard together (2 matters)
Read from the judgment's own cause title. This page is filed under one of them.
per law.
The third disputed issue is that the CIT(A) has erred in deleting the
difference of sundry credit balance of Rs.1,00,000/- based on the
submission of the assessee. We find that the CIT(A) has dealt on this
issue but there is no evidence placed either in the appellate proceedings
or during assessment proceedings by the assessee except mentioning
that M/s. Vaishnavi Road Carriers has raised bill of higher amount and it
15 ITA No. 507/CT K/ 2014 c.o. No. 08/CT K/ 2015 Asse ssment Year : 20 10- 201 1
was settled for a lower amount. We find that there should be supporting
reasons for reducing the bill and the confirmation of the third party in the
assessment proceedings regarding the difference. Accordingly, we set
aside the order of the CIT(A) on this issue and remit this back to the file
of the Assessing Officer to call for information and verify the same and
pass the order as per law.
The C.O. filed by the assessee is barred by limitation by 25 days.
After considering the condonation petition, we are convinced that the
assessee was prevented by sufficient cause in filing the cross objection
and filed delayed by 25 days. Hence, we condone the delay and admit
the cross objection for our adjudication.
We find that the cross objection is in support of the order of the
CIT(A). In view of our decision in the revenue’s appeal, the C.O. filed by
the assessee is rendered infructuous and hence, dismissed.
In the result, appeal filed by the revenue is partly allowed for
statistical purposes and cross objection filed by the assessee is dismissed
as infructuous.
Order pronounced on 28 /02/2018. SD/- SD/- (N.S Saini) (Pavan Kumar Gadale) ACCOUNTANT MEMBER JUDICIALMEMBER Cuttack; Dated 28 /02/2018 B.K.Parida, SPS
16 ITA No. 507/CT K/ 2014 c.o. No. 08/CT K/ 2015 Asse ssment Year : 20 10- 201 1
Copy of the Order forwarded to : 1. The revenue: ACIT, Circle 2(1), Sambalpur 2. The respondent/assessee:M/s. Divakar Engineering Pvt Ltd., 3rd floor, Paradise Chamber, Budharaja, Sambalpur 3. The CIT(A)-II, Bhubaneswar 4. Pr.CIT- 5. DR, ITAT, Cuttack BY ORDER, 6. Guard file. //True Copy// SR.PRIVATE SECRETARY ITAT, Cuttack
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