TaxTMI 
TaxTMI 
2017 (4) TMI 398
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....apital goods, & therefore the AO has disallowed the interest for the full year. 2b) The Ld.Commissioner of Income-Tax (Appeals)-I, Ahmedabad has erred in law and on facts in admitting additional evidence in violation of Rule 46A of the I.T.Rules. 3) On the facts and in the circumstances of the case, the Ld.Commissioner of Income-Tax (Appeals)-I, Ahmedabad ought to have upheld the order of the Assessing Officer. 4) It is therefore, prayed that the order of the Ld.Commissioner of Income-Tax (Appeals)-I, Ahmedabad may be set-a-side and that of the order of the Assessing Officer be restored. 3. Against ground No.1 of the Revenue's appeal, the Ld.AR for the assessee submitted that originally the assessee reduced profits of Rs,10,90,422/- in terms of provisions of clause-(vii) of Explaantion-1 of sub-section (2) of section 115JB of the Income Tax Act, 1961 (hereinafter referred to as "the Act") for computation of book profit under erroneous impression that the assessee-company is a sick-industrial company. However, on realizing mistake, the computation of book profit was revised in the course of assessment. The assessee also submitted with....
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....rected to recompute the Book Profit of the appellant after taking into account unabsorbed business losses of earlier years or unabsorbed depreciation as per the departmental records. 3.2. The Ld.AR relied upon the order of the CIT(A). 4. The Ld.DR for the Revenue, on the other hand, relied upon the order of the AO. 5. The short question is whether the appellate authority can entertain the fresh claims on the basis of facts available on record without revision of the return of income under s.139(5) of the Act. The issue is no longer res integra. It is well settled that the assessee is entitled to do so. Reference may be made to the decision of CIT vs. Pruthvi Brokers & Shareholders (P) Ltd. 349 ITR 336 (Bom.) in this regard. Accordingly, we find no infirmity in the order of the CIT(A) in accepting the claim of Assessee after appreciation of facts. Accordingly, Revenue's ground No.1 is dismissed. 6. Ground No.(2a) relates to disallowance of interest expenditure of Rs. 8,83,785/- by the AO under s.36(1)(iii) of the Act on the ground that interest paid in respect of capital borrowed for acquisition of a capital asset is required to be capitalized and cannot be allowed as revenue ex....
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....ith. Bank Book of Bank of Baroda ODTD A/c.No.4/076 and 4/359 See Page No.354 to 364 Bank Book of The Vijay Co.Op. Bank a/c.No.241 See Page No.365 to 395 There is no increase in deposit from Directors. There is no increase in Deposit from share holders up to February 2010. There is increased in deposit from Share Holder During the month of-March 2010 which were utilized for making payment to creditors for Goods as detailed hereunder:- Date Receipt Name of Amount Date Payment Name Amount 02/03/2010 R.N.Enterprise Dhrumil 1200000 05/03/2010 Shriji Enterprise 1657030 08/03/2010 R.N.Enterprise 2000000 09/03/2010 Alsakem 37153409 10/03/2010 RN Enterprise 1800000 10/03/2010 Ashivini Dyechem 564531 557750 11/03/2010 Dhrumil 1800000 15/03/2010 RN Enterprise Dhrumil 550000 550000 15/03/2010 Thermax Limited (For 607583 30/03/2010 RN Enterprise 300000 Total 1070000 Total 10533152 Monthwise position of Unsecured Loan From Directors & Share holders enclosed herewith. See Page No.396 to 397 Assessee has received job security deposit of Rs. 5600000/-....
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....ellant has not taken any term loan for the purpose and same way, there was no increase in borrowing fund except in the month of Feb 2010 which were utilized for making payment to creditors. Appellant submission was reproduced at para 5 of assessment order. 5.2. A.O. was wrongly observed that assessee has failed to produce relevant bank statement. Assessee has submitted copy of bank book reflecting payment vide page no.354-364 and page no.365-395 in its submission dt. 12/12/2012 noting for which is made at para 6.2 of assessment order. Assessee has made payment out of collection it made of current year business. There is increase in creditor which were used for making addition to fixed assets i.e. non interest bearing fund were utilized. Further without prejudice to above appellant submits that if interest is to be calculated it should be calculated on use basis i.e. from date to use to end of year and on amt. of fund used i.e. amt used for making payment for purchase of capital goods. Assessee submits here with date wise calculation sheet of amt. of interest and also interest on unpaid amt. (see page no 1-10 attached here). Total interest comes to Rs. 361722 on addition to plan....