https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=187538 https://www.taxtmi.com/caselaws?id=187538 Claim of deprecation on the fixed assets acquired - assessee could not produce original invoices/bills for the purchase of fixed assets - Held that:- In the light of the fire incident which has gutted the branch offices of the assessee at Bhiwandi and Jamshedpur, the assessee has not been able to produce documents in support of purchase of assets. However, the assessee has been able to show from records expenditure incurred for fixing of the assets. The said claim of the assessee has not been rebutted by the Revenue. In view of the facts and circumstances of the case, we hold that the assessee is entitled to claim deprecation on the fixed assets acquired for Bhiwandi and Jamshedpur Branches. - Decided in favour of assessee TDS u/s 194C - Dis-allowance u/s.40(a)(ia) - non deduction of tds on freight charges - Held that:- A perusal of the assessment order as well as the impugned order shows that the assessee during the course of assessment proceedings had produced 164 Form 15-I having value of Rs. 7.28 Crores on 10-11-2009 of which the Assessing Officer had not taken note of although reference of the same has been made in the assessment order. The CIT(Appeals) after considering the same had granted the relief to the assessee to the extent of Form 15-I produced by the assessee before the Assessing Officer. We do not find any error in the order of CIT(Appeals) in giving benefit of Form 15-I valuing Rs. 7.28 Crores. This ground in the appeal of Revenue is accordingly dismissed. For the remaining amount of Rs. 8.41 Crores assessee has submitted that the details of truck-wise list of forms 15-I received and destroyed in fire at Bhiwandi were produced before the Assessing Officer Filing of Form 15-I is mandatory. Obtaining of duplicate Form 15-I could be difficult but not impossible. The assessee could have made some effort in procuring duplicate Forms. There is nothing on record to show that any effort was made to obtain duplicate Forms. Therefore, in our considered opinion, the assessee has not discharged its duty and thus, cannot take advantage of fire in the office to get absolved from this liability. Accordingly, this ground of appeal of the assessee is dismissed. Dis-allowance of foreign exchange fluctuation loss - CIT(Appeals) after examining the documents on record concluded that out of the total loan of Rs. 23.84 Crores, Rs. 21.68 Crores were utilized for working capital purposes and hence allowed the same as expenditure - Held that:- The Hon'ble Apex Court in the case of Woodward Governor India (P) Ltd., (2009 (4) TMI 4 - SUPREME COURT ) has held that loss suffered by the assessee on account of fluctuation in the rates of foreign exchange as on the date of balance sheet is an expenditure u/s.37(1) of the Act. We do not find any infirmity in the findings of the CIT(Appeals) on this issue. Dis-allowance of interest on diversion of interest bearing loans - Held that:- CIT(Appeals) has rightly allowed the interest claimed by the assessee on sums advanced to its subsidiary company as a measure of commercial expediency. We do not find any reason to dislodge the findings of the CIT(Appeals) on the issue.See case of S.A. Builders Ltd., v. CIT [2006 (12) TMI 82 - SUPREME COURT] Case-Laws Income Tax Mon, 19 May 2014 00:00:00 +0530