Tribunal allows appeal, orders fresh examination on disallowed issues

The tribunal partially allowed the assessee's appeal, setting aside the CIT(A)'s order on all three issues. It directed a fresh examination by the assessing officer with proper inquiries and opportunities for the assessee to be heard. The disallowance of the difference in the account of Kohinoor Crane services, excess claim of depreciation on Plate Blending Machine, and amount payable to Envee Faberect were all subject to further scrutiny due to incomplete investigations by the assessing officer.

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Issues involved:
1. Disallowance of difference in account of Kohinoor Crane services.
2. Disallowance of excess claim of depreciation on Plate Blending Machine.
3. Disallowance of amount payable to Envee Faberect.

Detailed Analysis:
1. The first issue pertains to the disallowance of the difference in the account of Kohinoor Crane services. The Assessing Officer disallowed Rs. 25,15,865 claimed by the assessee as paid towards crane hire charges after Kohinoor Crane Service denied any business activity with the assessee. The Assessing Officer concluded that the assessee inflated the crane hire charges to reduce profits. The assessee produced bills/invoices during the appeal hearing, but further verification revealed discrepancies. The tribunal found that the assessing officer's inquiries were incomplete and directed a fresh examination by considering the payees' bank accounts and confronting statements given by relevant parties.

2. The second issue concerns the disallowance of Rs. 1,15,250 as excess depreciation claimed on a Plate Blending Machine purchased from Raj Exports. The Assessing Officer found discrepancies in the transaction details and noted an attempt to inflate the machinery cost with a non-genuine purchase bill. Consequently, the excess depreciation claimed was disallowed. The tribunal observed that the assessing officer's decision lacked a thorough examination of the transaction details and directed a fresh assessment with proper inquiries.

3. The final issue involves the disallowance of Rs. 23,15,283 as the amount payable to Envee Faberect. The assessing officer disallowed this amount based on a statement from Shri N. Mohammed, citing a relationship with the assessee's Managing Director as the reason for issuing the invoice. The tribunal noted that payments were made through cheques and highlighted the necessity to examine the payees' bank accounts for authenticity. The tribunal found the assessing officer's decision lacking in comprehensive investigation and directed a fresh examination of the issue.

In conclusion, the tribunal partially allowed the assessee's appeal, setting aside the CIT(A)'s order on all three issues and instructing a fresh examination by the assessing officer with proper inquiries and opportunities for the assessee to be heard.

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