2010 (2) TMI 717

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....ppeal by the Revenue is directed against the orders of the learned CIT(A) dt. 16th Sept., 2009 and pertains to asst. yr. 2004-05.   2. The first issue raised is that the learned CIT(A) erred in directing the AO not to include disallowance of gratuity for calculating tax under s. 115JB of the IT Act.   3. On this issue AO noted that assessee company has made a provision of gratuity ....

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....eard learned Departmental Representative and perused the records. None appeared on behalf of the assessee. We find that analogical question of provision of gratuity has been considered by the Hon'ble jurisdictional High Court in the case cited above. The Hon'ble Court has referred the decision of the Hon'ble Supreme Court of India in the case of Bharat Earth Movers vs. CIT (2000) 162 CTR (SC) 325 ....

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....he assessee produced certain evidences in support of acquisition of fixed assets. The same were considered as additional evidence and report was called for from the AO in terms of r. 46A(3). Considering the same, learned CIT(A) held that the AO has not made out a case that the assets were not used for the purpose of business. He noted that assessee has produced the evidence to substantiate its own....

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....rected to allow depreciation on the fixed assets purchased during the year amounting to Rs. 10,30,727 in accordance with the admissibility thereof. It is also relevant to mention here that the appellant's Authorised Representative(s) have themselves admitted that the assets were put to use for less than 180 days which may be considered by the AO while allowing depreciation on the said fixed assets....