TaxTMI 
TaxTMI 
TaxTMI 
2016 (12) TMI 1480
X X X X Extracts X X X X
X X X X Extracts X X X X
.... AO in disallowing deferred revenue expenditure of Rs. 4,03,633/-. 2. The ld. CIT(A) has erred in law and on the facts of the case in confirming the action of Id. AO in disallowing Rs. 3,27,045/- on account of depreciation, interest and other expenditure claimed on vehicle. 3. The ld. CIT(A) has erred in law and on the facts of the case in confirming the action of ld. AO in invoking provisions of S. 14A of the Act read with Rule 8D of the IT Rules. 4. The ld. CIT(A) has erred in law and on the facts of the case in confirming the action of ld. AO in making addition of Rs. 38,333/- u/s 14A of the Act. 5. The ld. CIT(A) has erred in law and on the facts of the case in confirming the action of ld. AO in not allowing loss of Rs. 2,64,958....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... is a company, the tax rate is uniform for all years and, therefore, it would have no revenue implication whether the impugned expenditure is allowed in the year under consideration or any other assessment year. Per contra, the ld. D.R. supported the findings of the ld. CIT(A). 7. We have carefully considered the orders of the authorities below. The undisputed fact is that the assessee had a brought forward balance of Rs. 4,03,633/- in the deferred revenue expenses account. It is also an undisputed fact that the assessee has further debited a sum of Rs. 13,14,870/- and out of the total expenditure, the assessee has written off 20% in its Profit and Loss account. What is surprising to note is that the balance of 80% has been claimed as dedu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd all related expenditures have to be allowed. Per contra, the ld. D.R. strongly supported the findings of the revenue authorities. 12. After considering the facts in totality, in our considered opinion, the assessee is entitled for claim of depreciation on the vehicles used by it even though they have been purchased in the name of the directors. We draw support from the decision of the Co-ordinate Bench in the case of V-Tex Overseas Pvt. Ltd. in ITA No. 6571/Mum/2013. We accordingly set aside the findings of the ld. CIT(A) and direct the A.O. to delete the addition of Rs. 3,27,045/-. Ground no. 2 is allowed. 13. Ground nos. 3 & 4 relates to the disallowances made u/s. 14A r.w.r. 8D of the Act. 14. The A.O. found that the assessee has m....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... 2,64,958/- being loss treated as speculation loss. 20. While scrutinizing the return of the assessee, the A.O. noticed that the assessee claimed hedging loss of Rs. 2,29,920/-. The assessee was asked to furnish details and documentary evidences in support of the above expenses. Necessary details were furnished and perused by the A.O. who noticed that the assessee has made several transactions for purchase & sales of copper through Multi Commodity Exchange and the transactions were settled other-wise than by actual delivery. In view of the above, the A.O. treated the loss of Rs. 2,29,920/- as speculation loss. The A.O. also disallowed MCX trading charges. 21. Assessee carried the matter before the ld. CIT(A) but without any success. 22.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....fication of its loss. The assessee has also not brought on record the relevant contract notes qua the manufacturing and selling of finished products. The onus is upon the assessee to demonstrate its claim of loss. Merely by filing the copy of the ledger account would not do any good. However, in the interest of justice and fair play, we restore this issue to the files of the A.O. The assessee is directed to demonstrate the loss with its manufacturing and selling activities. The Assessee is also directed to furnish details in respect of any contract cancelled before the due date. The assessee is also directed to furnish details in respect of unexpired/outstanding contracts at the end of the year. The A.O. is directed to verify such details a....