TaxTMI 
TaxTMI 
2019 (6) TMI 427
X X X X Extracts X X X X
X X X X Extracts X X X X
....quired evidence including their PANS, Names and addresses of the contractors and their bills containing full particulars of quantities, rates etc. (b) all the payments has been made to them by means of account payee cheques after deduction of TDS in all the cases. (c) the evidence filed has not been assailed by the id. A.O. is there any rebutted of the facts or evidence. No tangible materials. 2. That on facts and in law, the id. Commissioner (Appeals) has erred in confirming disallowance of Rs. 38,968/- by reducing the rate of depreciation on some Electrical equipments and fittings for installing Plant and Machinery in the A.Y. 2002-03 as forming part of the block of assets entitled to 15% and depreciation allowed till the A.Y. 2009-10i (a) There being no change facts and the W.D.V of the assets being brought forward by the Revenue since the A.Y. 2009-10, there was no justification for disturbing the W.D.V. of the block of assets by isolating these items on different perception by the Id. A.O. of the nature of these items and also violating the Rule of estoppal. (3) On the facts and in law, the id. Commissioner (Appeal) has erred in con....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ddition of Rs. 25,74,432/-made by disallowing 15% of polishing charges, to Rs. 3,73,469/-, while ignoring the fact that in the earlier years CIT(A) has itself allowed disallowance of 15% which was upheld by ITAT and for the AY 2009-10 the disallowance in respect of polishing charges was made by AO @15% against which assessee has not gone on for appeal.? I.T.A. No. 1147/DEL/2016 (A.Y 2011-12) Ground of Appeal No. 1 "That on the facts and the evidence of the case, the Id. CIT (Appeals) has erred in sustaining disallowance out of the total polishing charges payments of Rs. 1, 71, 62, 870/-, a sum of Rs. 3, 69, 479/- representing petty payments aggregating to Rs. 3, 73, 469/- to five petty job workers who at the time of assessment were either not found at their old address or did not comply with the notices U/s 133 (6) though the payment were duly supported by their bills specifying the quantities of the work done and the further fact that in accordance with the general practice of the appellant, the payments were made to them by means of account payee cheques. Ground of Appeal No. 2 That the Id. CIT (Appeals) has erred in conforming the allowance....
X X X X Extracts X X X X
X X X X Extracts X X X X
....has erred in restricting the addition of Rs. 26,81,506/- made by disallowing 15% of polishing charges, to Rs. 3,87,925/-, without giving any basis for arriving at the figure of Rs. 3,87,925/-, resulting in arbitrary deletion of Rs. 22,93,581/-? 3. We are first taking appeals for Assessment Year 2011-12 as the facts for A.Y. 2012-13 is identical. The assessee firm consists of five partners namely M/s Harvinder Singh & Sons, HUF, Preet Pal Singh, Paramjeet Singh, Harpal Singh and Prabhjeet Singh , sharing equal profit sharing ratio and is engaged in the business of manufacturing and export of stainless steel utensils, wares, cutlery etc. and trading of S.S. Shelter etc. During the year, the assessee declared gross profit of Rs. 9,81,83,341/- against total sales of Rs. 56,37,53,725/- yielding a GP rate of 17.41% as compared to immediate preceding years GP rate of 20.47% against the total sales of Rs. 40,52,75,216/- . Return of income declaring an income of Rs. 1,65,86,630/- was filed by the assessee on 30/09/2011. The case was selected for scrutiny and notice u/s 143(2) was issued on 9/8/2012 and was duly served upon the assessee. Subsequently notice u/s 142(1) along with questi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....address and since the commission was paid to foreign parties PAN was not applicable. The Ld. AR submitted that that the assessee has appointed foreign agents for procuring expert orders. They render services outside India and have no establishment of business connection in India. The Assessing Officer disallowed the commission paid to the foreign agent on the ground that the assessee has not deducted tax relying upon CBDT Circular No. 23 dated 23/7/1969 & CBDT Circular No. 786, dated 7/2/2000. However, these circulars have been withdrawn by CBDT. The Assessing Officer also relied upon the decision of authority of advance reading in case of SKF Boiler & Driers Pvt. Ltd. wherein it was held that withholding of tax is mandatory u/s 95 on export commission paid to non resident agent. The Assessing Officer held that since, commission is due to accrue or arise in India, the sources from which the assessee had earned income were, therefore, inside India as the income earning activity that the payments for technical consultancy has been made outside India. The Ld. AR further submitted that payment to non-resident have been made for provision of consultancy services for earning income fr....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... complete details of polishing charges paid to 18 parties. The Assessing Officer issued notice u/s 133(6) to 18 parties out of which 17 parties has not complied. Thereafter, the assessee furnish confirmations from 8 parties to whom payment aggregating Rs. 1,63,87,62/- have been made out of total polishing charges of Rs. 1,71,62,877/-. The assessee also furnished the photo copies of bills of copies and ledger account in respect of remaining parties. However, the Assessing Officer ignored the said facts and evidences furnished by the assessee and made an ad-hoc disallowance of Rs. 25,74,432/- being 15% of total polishing charges at Rs. 1,71,62,877/-. The Ld. AR further submitted that the CIT(A) has deleted the addition of Rs. 22,00,963/- on the basis that assessee has established the claim of Rs. 1,67,89, 408/- in respect of polishing charges as the Assessing Officer did not state anything in case of remaining 12 parties. The Ld. AR further submitted that the Assessing Officer has alleged that the assessee failed to furnish the requisite information in respect of payment made to 5 parties amounting to Rs. 3,73,469/- without appreciating the fact that during assessment proceedings ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of rates of depreciation as per Income Tax Rules. In this regard, the Ld. AR submitted that Assessing Officer as well as CIT(A) has not appreciated nature and application of electrical installation items and such electrical installations form an integral part of assessee plant used for manufacturing steel utensils. Therefore, the Ld. AR submitted that depreciation was allowable at the rate applicable to plant and machinery. The Ld. AR relied upon the decisions of the Tribunal in case of DCIT Vs. Nalwa Steels and Power Limited ITA No. 4559/Del/2010 order dated 9/8/2016. Thus, the Ld. AR submitted that the depreciation on electrical fittings has been rightly claimed by the assessee at 15% by treating it as part of plant and machinery, and not as furniture and fixtures. Thus, the Ld. AR submitted that the addition made by the Assessing Officer as well as CIT(A) amounting of excess claim of depreciation is not justified. 12. The Ld. DR relied upon the order of the Assessing Officer and the order of the CIT(A). 13. We have heard both the parties and perused the material available on record. The depreciation on electrical fittings has rightly been claimed by the assessee at 15% ....