TaxTMI 
TaxTMI 
2016 (4) TMI 696
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....is in support of the order of CIT(A). Since, the issues involved in these appeals and cross objections are common, they are clubbed, heard together and disposed off by way of this common order, for the sake of convenience. ITA 637/Vizag/2013: 2. The brief facts of the case are that the assessee is an individual engaged in the business of execution of works contract, sales of petrol, diesel and also excavation of quarry. The assessee has filed his return of income for the assessment year 2009-10 on 30.9.2009 declaring a total income of Rs. 41,83,920/-, besides agricultural income of Rs. 2,90,862/-. The return was processed u/s 143(1) of the Income Tax Act, 1961 (hereinafter called as 'the Act') on 24.4.2010. Subsequently, the case....
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.... not substantiate the expenditure claimed with any evidences. However, taking into consideration of the fact that the assessee has accepted sub contract works, the income from works contract is estimated @ 6% on gross contract receipts. Further, in addition to estimation of net profit from contract receipts, the A.O. made separate additions towards income from other sources being insurance claim, interest received on FDR and other receipts as disclosed by the assessee in the profit & loss account. 3. Aggrieved by the assessment order, the assessee preferred an appeal before the CIT(A). Before the CIT(A), the assessee reiterated the submissions made before the A.O. The assessee further submitted that out of the gross contract receipts of ....
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....". Aggrieved by the CIT(A)'s order, the assessee is in appeal before us. 4. The Ld. A.R. submitted that the CIT(A) was erred in confirming the additions made by the A.O. towards income from other sources being insurance claim on account of damage of Excavator and profit on sale of Dozer. The A.R. further submitted that the assessee has received insurance claim towards loss incurred on account of damage of Excavator due to fire. During the financial year under consideration, a machine called EX-70 was met with fire accident The assessee has claimed insurance and the insurer has reimbursed an amount of Rs. 8 lakhs towards loss of Excavator. The insurance claim received towards loss of excavator should be forming part of block of assets and....
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....ssee himself has credited the income under the head "Income from other sources", there is no merit in the assessee arguments that these items should be considered under block concept for claiming depreciation and to arrive at Written down Value as per section 50 of the Act. We further noticed that the assessee claims to have incurred a sum of Rs. 17,40,198/- towards repair of the damaged excavator. Though assessee claims that it has incurred substantial amount for repair of the damaged excavator, the A.O. as well as the CIT(A) have failed to consider the fact that whether the said expenditure has been claimed as revenue in nature and debited to profit & loss account or capital in nature and added to the cost of the asset to claim depreciati....