TaxTMI 
TaxTMI 
2020 (10) TMI 506
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....r the AY 2006-07. 2. The assessee has raised several elaborate grounds in its appeals however, the cruxes of the issues are as follows:- (1) The Ld. CIT (A) has erred in confirming the addition made by the Ld. AO for Rs. 3,25,182/- by disallowing the expenditure claimed under the head "tools consumed" , treating it as capital expenditure. (2) The Ld. CIT (A) has erred in confirming the addition made by the Ld. AO for Rs. 3,49,000/- by disallowing the expenditure claimed towards land development, treating it as capital expenditure. At the time of hearing the Ld. AR stated that the assessee does not want to press this ground. Accordingly, this ground raised by the assessee is dismissed. (3) The Ld. CIT (A) has er....
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....received on 21/3/2016 and the appeal against the same could not be filed in time as the papers had been misplaced by one of our office staff and the same could not be traced out. The appeal filed on 23/05/2017 with \the delay of 368 days as the appeal was due for filing on 20- /05/2016. The delay in filing of the appeal may please be condoned and the appeal may please be considered." 4. On perusal of the explanation given by the assessee in the condonation petition filed before us, we find that the delay in filing the appeal is not attributable to the assessee. Therefore, in the interest of justice, we hereby condone the delay of 368 days in filing the appeal before the Tribunal and proceed to hear the appeal on merits. 5. The brief f....
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....rds the purchase of tools amounting to Rs. 3,25,182/- is quite negligible and it does not bring any significant influence on the profit of the company. The Generally Accepted Accounting Principles (GAAP) recognize the concept of "materiality" ie., "in any financial accounting statements, there are some transaction that are too small to be recognised and such transactions might not have any impact on the analysis of the financial statement by an external observer; removal of such irrelevant information to keep the financial statement crisp and consolidated is called the concept of materiality". This concept is also accepted by the financial accounting standards board (FASB). From the facts of the case it is apparent that the assessee has dra....
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....llowed the claim of depreciation of Rs. 17,38,711/-. On appeal, the Ld. CIT (A) confirmed the order of the Ld. AO by agreeing with his view. 11. At the outset, we do not find any merit in the orders of the Ld. Revenue Authorities on this issue as well. The provisions of section 32(1)(iii) of the Act clearly stipulates that when the net amount receivable on the alienation of an asset including scrap, falls short of the written down value of the asset, then such amount should be treated as depreciation in the hands of the assessee. In the case of the assessee, the written down value of the building is Rs. 17,38,711/- and the same was demolished and nothing was realised out of the building. Hence, as per the provisions of section 32(1)(iii)....
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....lock of assets for the purpose of calculation of depreciation. Accordingly, the Ld. AO disallowed the claim of depreciation of Rs. 4,758/-. On appeal, the Ld. CIT (A) confirmed the order of the Ld. AO by agreeing with his view. 14. At the outset, we do not find any merit in the orders of the Ld. Revenue Authorities on this issue as well. The provisions of section 32(1)(iii) of the Act clearly stipulates that when the net amount receivable on the alienation of an asset including scrap, falls short of the written down value of the asset, then such amount should be treated as depreciation in the hands of the assessee. In the case of the assessee, the written down value of the building is Rs. 4,758/- and the same was demolished and nothing w....
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....y on the closing stock of finished goods and therefore he estimated the Excise duty @ 16.32% and added to the value of the closing stock which led to the addition of income amounting to Rs. 3,24,180/-. On appeal, the Ld. CIT (A) confirmed the order of the Ld. AO agreeing with his view 17. Before us, the Ld. AR vehemently argued that the assessee had not paid Excise Duty on the closing stock and therefore for the purpose of valuation of the closing stock the Excise Duty payable should not be included and if done so it will be erroneous. Hence, it was pleaded that the addition made on this count may be deleted. The Ld. DR on the other hand submitted that the assessee had not furnished the details regarding the same which led to the additio....