TaxTMI 
TaxTMI 
2014 (1) TMI 1854
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....). 2. Facts apropos are that assessee a manufacturer and exporter of garments had filed its return for the impugned assessment year, declaring an income of Rs. 48,77,750/-. During the course of the assessment proceeding, Assessing Officer sought clarification on its claim of depreciation on split air-conditioners costing as Rs. 2,94,000/- and sundry debtors balance of Rs. 3,82,46,693/-. As per the Assessing Officer nothing was forthcoming from the assessee to show that the Split AC was installed during the relevant previous year. He therefore disallowed claim of depreciation amounting to Rs. 36,750/- on this. 3. Based on the details of sundry debtors filed by the assessee, Assessing Officer reached a conclusion that sales to ....
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....lients, before charging such sum to the P&L account. 7. Ld. CIT(Appeals) was appreciative of the above contention. According to him, the invoice for the Split AC by itself was good enough evidence for considering it as installed and, therefore, claim of depreciation had to be disallowed. Vis-a-vis the difference in sundry debtors ld. CIT(Appeals) noted that assessee had filed audited accounts statements along with it's return which clearly brought out the fact that the difference arose only for a reason that sales were expressed in FOB value whereas customers were charged on CIF value. Recovery of freight from the customers went to reduce the total freight charges. Assessee had only claimed net freight charges in it's Profit & Loss ....
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....r, there was no fresh evidence filed by the assessee. Assessee had only relied on the audited final accounts statement and schedules thereto, all of which were part of the return of income filed by it. It had shown therefrom that the difference between the debtors' account and the sales value credited in the Profit & Loss Account was only due to the freight element and recovery of the freight amount from the debtors were netted against the freight cost. Only the net freight was charged to the Profit & Loss Account. In our opinion, explanation given by the assessee based on records already filed before the Assessing Officer cannot be considered as fresh evidence. Procedure to be followed in an appeal before CIT(Appeals) is set out in Section....