2021 (2) TMI 266

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....acts are that, assessee engaged in the business of printing and designing, filed return of income on 29.09.2010 and 30.09.2011 declaring NIL income for the A.Ys. 2010-11 and 2011-12. The returns were processed u/s. 143(1) of the Act. Subsequently, Assessing Officer received information from the DGIT(Inv.,), Mumbai about the accommodation entries provided by various dealers and assessee was also one of the beneficiary from those dealers. The assessments were reopened U/s. 147 of the Act based on the information received from DGIT (Inv.,), Mumbai, that the assessee has availed accommodation entries from various dealers who are said to be providing accommodation entries without there being transportation of any goods. In the reassessment proce....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....pectively. On appeal the Ld. CIT(A) considering the evidences and various submissions of the assessee sustained the action of the Assessing Officer in adding 25% of the alleged bogus purchases and deleted the disallowance of depreciation of Rs. 2,17,500/- and Rs. 4,02,375/- claimed for the A.Y. 2010-11 and A.Y. 2011-12 respectively on the purchase of machinery from M/s. Galaxy Corporation. Against deletion of depreciation on bogus purchase of machinery from M/s. Galaxy Corporation, revenue is in appeal. 4. Inspite of issue of notice none appeared on behalf of the assessee nor any adjournment was sought. Therefore, I proceed to dispose off these appeals on merit on hearing Ld. DR. 5. Ld. DR vehemently supported the orders of the Assessing ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rchased a machine from a hawala party in AY 2010-11 and the depreciation of such purchase was not allowable. He therefore disallowed depreciation to the extent of Rs. 4,02,375/- computed on the WDV of Rs. 26,82,500/- @ 15% was disallowed. This is a continuation of the issue and decision for AY 2010-11. The assessee had claimed purchase from Galaxy Corporation claimed as capital expenditure of Rs. 32,62,500/- on which depreciation of Rs. 2,17,500 was claimed in AY 2010-11. In the appellate proceedings, it was submitted that the appellant had purchased and imported Komari (Japan) made printing machine from M/s. Galaxy Corporation on 03.11.2009, costing Rs. 29,00,000/- in AY 2010-11. This was purchased with the help of term loan from Bank of M....