TaxTMI 
TaxTMI 
2016 (5) TMI 410
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....h out of self capital. 2. Besides, an application has been moved by the assessee under Rule 11 of the Appellate Tribunal Rules, 1963 for allowing the following additional ground for the adjudication of the ITAT:( The A.O. has erred in law and on facts in disallowing an amount of Rs. 74,390 on account of shortage in diesel alleging that assessee has claimed the shortage on higher side to reduce the profit element). 2.1 In support of the above application, the Learned AR submitted that the issue raised in the additional ground is very much emerging from the assessment order and no fresh material outside the record is required to be considered for adjudication of the same. He also placed reliance on the following decision: i) NT....
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....at the assessee is running a petrol pump in the name and style of M/s. Mahalaxmi Petroleum. The Assessing Officer disallowed the claimed depreciation of Rs. 4,56,960 on a new tank lorry purchased for Rs. 15,23,110 on the ground that when the tank lorry was stated to have been used for own business, no expenditure on account of fuel/repairs, salary of drivers have been incurred and the claim of the assessee firm transportation of mobile oil was not accepted on the basis that it is sold in packs and not as loose liquid. Learned CIT(Appeals) has upheld the same. 7. In support of the ground, the Learned AR submitted that while making and upholding the disallowance of the claimed depreciation, the authorities below have failed to appreciate t....
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....nal Gum Industries - 322 ITR 542 (Guj.); iii) Swati Synthetic Ltd. vs. ITO - 38 SOT 208 (Mum.). 8. The Learned Senior DR on the contrary placed reliance on the orders of the authorities below. She submitted that the authorities below have dealt with the issue in detail. 9. Considering the above submissions supported with the above cited decisions, we concur with the contention of the assessee that when an asset is mingled in a block it completely loses its individual identity. In its audit report, the assessee had included the lorry in question in block of assets, thus, it should not have been isolated for making the disallowance of the depreciation claimed on it. Besides, it is an undisputed fact that the tank lorry in quest....
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....the other hand placed reliance on the orders of the authorities below with this further submission that the assessee has failed to establish that the advance was given to Dr. Rajbir Singh for the purpose of business. 12. Considering the above submissions, we find that while making the disallowance the Assessing Officer has ignored some important aspects of the matter. Firstly, the interest free advance in question was not made during the year under consideration and secondly assessee was having sufficient interest free funds to make the advance. The disallowance made by the Assessing Officer was not justified. We thus while setting aside orders of the authorities below in this regard direct the Assessing Officer to delete the disallowanc....