2018 (1) TMI 592

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.... its appeal vide ITA No.1540/Ahd/2015: 1. The Hon'ble Commissioner of Income Tax (Appeals)-6, Ahmedabad has erred on the facts and in law by confirming the disallowance of Depreciation of Rs. 1,45,617/-. 2. The Hon'ble Commissioner of Income Tax (Appeals)-6, Ahmedabad has erred on the facts and in law by confirming the disallowance of unapproved gratuity of Rs. 2,83,300/-. 3. The Revenue has raised following grounds in its appeal vide ITA No. 1456/Ahd/2015: 1. The ld. CIT(A) has erred in law and on facts in deleting the disallowance of interest expenses and finance charges of Rs. 16,75,605/- without appreciating the fact that the assessee has not furnished any supporting evidence regarding the utilization of fu....

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....the depreciation at 15% as electrical installations are part of plant and machinery and not Furniture and fixtures. Ld. CIT(A) also not convinced with the plea of the assessee and hence he confirmed the addition of Rs. 1,45,617/- made by the AO. 5. We have gone through the relevant record and impugned order. Ld. AR cited an order of co-ordinate bench in ITA No.4172/Ahd/2007. Coordinate bench has held as under: "We find from the arguments of both the sides as well as the orders of the lower authorities that the nature of assets i.e. electrical installation that consists of electrical wires, switches, plugs, cables, MCB box and electrical items, which cannot function independently, rather, this is a part of plant and machinery and....

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....he 4th Schedule to Income Tax of 31st Jan, 2007 as on date, same was not disposed off by the department. In this case, amount was paid to LIC group of Gratuity Fund, which is under the control of the Central Government and an application for approval of Gratuity fund is pending before the department. As per decision of Hon'ble Punjab & Haryana High Court, in the case of CIT vs. Bitoni Lamps Ltd. 277 ITR 396. The AO however, held that gratuity liability cannot be allowed when the assessee did not have any approved gratuity fund. The claim was accordingly DCIT, Bharuch vs. Baroda Gujarat Gramin Bank disallowed. Same submissions were made before the learned CIT(A). The learned CIT(A) considering the order of ITAT Ahmedabad Bench in the case of....

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....2014 utilization of borrowings taken during the year under consideration. The appellant had demonstrated the utilization of borrowed funds by way of producing the relevant extract of Bank Statement and AO has failed to appreciate that disallowance of interest expenses cannot be made even though fund are utilized for business purposes. So far as utilization of reserve and surplus is concerned. The AO failed in calculating that appellant had utilized reserve and surplus and AO has failed to appreciate that it goes to prudence of the appellant company to utilize the reserve and surplus. AO has no right to suggest as to how the funds, reserves and surplus, share capital etc. should be utilized. It is the company who decides the time of utilizat....

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....e is no new amount has been taken during the year under consideration and an addition u/s.68 is not legal and assessee cited a judgment CIT vs. Usha Stud Agricultural Famrs Ltd. (301 ITR 384)(Delhi HC) in the appeal, it has been held that no addition u/s.68 with respect to opening balance. In our considered opinion, in such circumstances this ground of appeal cannot sustain. In the result, this ground of appeal is dismissed. 16. So far as ground related to deleing the addition of Rs. 95,274/- made by AO toward the late payment of employees contribution to PF and ESIC, even though same was not paid within due date. The ld. AO made disallowance of contribution of the employee towards PF & ESI of Rs. 95,274/- observing that the same were pa....