TaxTMI 
TaxTMI 
2017 (8) TMI 1443
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....6,95,244/- on account of low Gross Profit after rejecting the books of account of the assessee. 2. Deleting the addition of Rs. 5,15,368/- u/s. 14A r.w. Rule 8D of the Income Tax Act, 1961 (hereinafter referred to as "the Act"). 4. Shri Sunil U. Pathak appearing on behalf of the assessee submitted that during the period relevant to the assessment year under appeal, the assessee had written off stock of S.K. Berries also called as brinjals valued at Rs. 16,90,477/-. The assessee was selling the aforesaid product in powder form to Pharma Companies. The aforesaid product had become obsolete as the assessee could not find buyers for the same. The stock was carried forward in the books year after year. Since, the value of stock had become Nil the assessee decided to write off the same. 5. Shri Achal Sharma representing the Department vehemently defended the order of Commissioner of Income Tax (Appeals) in sustaining the findings of Assessing Officer in rejecting the claim of assessee. The ld. DR submitted that the assessee has admitted before the authorities below that S.K. Berries also called „brinjals‟ is a perishable product. The aforesaid stock relates to busin....
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....for the said assessment year accepted the claim of assessee and made no disallowance. The ld. AR placed on record a copy of the assessment order for the assessment year 2008-09 at pages 24 to 28 of the paper book. 8. The ld. DR fairly admitted that the issue raised by the assessee in ground No. 3 of the appeal has been adjudicated by the Tribunal in assessee‟s own case in assessment year 2007-08. 9. It is an undisputed fact that interest Rs. 43,85,538/-, depreciation Rs. 48,46,127/- and telephone/electricity expenses Rs. 48,000/- are in respect of flat at Khar, Mumbai which has been used by the assessee for business purposes. The Tribunal in ITA No. 891/PN/2013 (supra) had dealt with this issue and has held as under "11. We have considered the rival arguments made by both the sides, perused the orders of the AO and CIT(A) and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. We find the AO in the instant case disallowed interest of Rs. 38,87,288 and telephone/electricity charges of Rs. 48,154/- in respect of the property at Khar, Mumbai on the ground that the interest and other expenses claimed has no relation w....
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.... names of directors/partners. Addl.CIT Vs. Manjeet Engg. Ind. 154 ITR 509 Delhi CIT Vs. Fazilka Dabwali 270 ITR 398; P&H Ratio of the said decisions would also apply to the facts of our case also. It is also important to note that the appellant's claim for depreciation has been accepted also for the A.Y. 2007-08. We are enclosing herewith a copy of our sales tax registration certificate wherein the particulars of Offices and its addresses are mentioned." 13. From the above it is clearly seen that the assessee's claim of depreciation which has been accepted by the AO in the original assessment has not been withdrawn. This otherwise implies that the AO has accepted the flat as business asset used for the purpose of business. We find the Hon'ble Punjab & Haryana High Court in the case of CIT Vs. Fazilka Dabwali TPT Company Pvt. Ltd. following the decision of Hon'ble Supreme Court in the case of CIT Vs. Poddar Cement Pvt. Ltd. and others reported in 226 ITR 625 has allowed the claim of depreciation on buses purchased in the name of its directors. Although the buses were not registered in the name of the company it was held that registration of the same in the name of the company ....
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.... appeal by the Revenue is with respect to deleting of Gross Profit addition. The ld. AR submitted that the assessee is a jeweler and is regularly maintaining books of account. All the sales and purchases are duly accounted. Day to day quantity account is maintained. The Gross Profit shown by the assessee in the period relevant to the assessment year under appeal is 4.28%. Whereas, in assessment year 2008-09 it was merely 1.69%. No addition was made by the Assessing Officer in past on account of low Gross Profit. The Assessing Officer estimated Gross Profit @ 4.55% without pointing any material defect in the books maintained by the assessee. The Commissioner of Income Tax (Appeals) deleted the addition after considering the facts of the case and detailed documents on record. The ld. AR prayed for upholding the findings of Commissioner of Income Tax (Appeals) and dismissing the ground raised by the Department in appeal. 13. On the other hand ld. DR submitted that the Assessing Officer has given the list of defects in books of assessee in para 15 of the assessment order. The ld. DR submitted that the assessee has not given stock statement and no reconciliation statement was made as o....
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.... the assessee has invested sum of Rs. 1,36,40,800/- in the shares of group companies. These investments have been made in earlier years. No fresh investment has been made during the period relevant to the assessment year 2009-10. The assessee has not received any dividend income from any of the group companies. Since, the assessee had not earned any exempt income no disallowance u/s. 14A is warranted. In support of his submissions the ld. AR placed reliance on the following decisions : i. Commissioner of Income Tax Vs. Corrtech Energy Pvt. Ltd., 372 ITR 97 (Guj.); ii. Cheminvest Limited Vs. Commissioner of Income Tax, 378 ITR 33 (Delhi); iii. Avinash Bhosale Infrastructure Pvt. Ltd. Vs. Dy. Commissioner of Income Tax in ITA No. 984/PN/2016 for assessment year 2008-09 decided on 14-10-2016; iv. Shri Goyal Ishwarchand Kishorilal Vs. JCIT in ITA No. 422/PN/2013 for assessment year 2009-10 decided on 26-06-2014. 16. On the other hand ld. DR submitted that irrespect of the fact that the assessee has earned any exempt income on the investment, disallowance has to be made in accordance with the provisions of section 14A r.w. Rule 8D of the Act. The ld. DR prayed for reversing the....