TaxTMI 
TaxTMI 
2018 (4) TMI 141
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.... Appeal under Section 260A of the Income Tax Act, 1961 (the Act), challenges the order dated 27th November, 2014 passed by the Income Tax Appellate Tribunal (the Tribunal). The impugned order dated 27th November, 2014 is in respect of Assessment Year 2008-09. 2 Revenue urges the following questions of law, for our consideration: "(a) Whether on the facts and in the circumstance of the case and ....
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.... generator set in the books of Kirloskar Oil Engines Ltd., was Rs. 4.05 Crores. Thus, Respondent was asked to explain why Explanation 3 to Section 43(1) should not be applied, as to reduce the actual cost. (ii) The Respondent responded to the notice, pointing out that the new generator sets would costs Rs. 30.50 Crores and the time between procurement to commissioning, would be about 10 months. T....
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.... the appeal of the Respondent was dismissed. (iv) Being aggrieved, the Respondent filed a further appeal to the Tribunal. The impugned order on facts found that sufficient explanation given by the Respondent for purchase of second hand generator set at the price of Rs. 5.27 Crores was satisfactory. This, in view of the fact that the new generator set would take 10 months to install and the Respon....
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....dent for purchase of generator sets at Rs. 5.27 Crores was reasonable. This coupled with the facts that Revenue did not make any enquiry to find that the market value of similar generator sets as purchased by the Respondent from Kirloskar Oil Engines Ltd., as found by the Tribunal. We find that the Revenue seems to have proceeded on suspicious rather than on facts to disregard the purchase price o....