TaxTMI 
TaxTMI 
TaxTMI 
2021 (6) TMI 287
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....Tax (Appeals) [CIT(A)J has erred in not following the directions given by the Hon'ble ITAT. 2. On the facts, in the circumstances of the case & in law, the Learned CIT(A) has erred in upholding the disallowance of depreciation of Rs. 2,74,85 8/- made by learned Assessing Officer (A.O.) in respect of Fixed Assets on the pretext of there being no business during the year under appeal, whereas the said fixed assets were already put to use in business in the preceding previous year so the same formed a part of the block and they were used in the current year as well. 3. The learned C I T (A) has further erred in upholding the disallowance made by the Id. A O of total business expenses amounting to Rs. 1,95,6077-, merely on the basis of ....
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....t from business as unexplained credit under section 68 of the Act on the reasoning that the assessee has not carried out any business activity during the year. While doing so, the assessing officer also disallowed various expenditure/deduction claimed against the business income. Assessee challenged the aforesaid decision of the assessing officer before the first appellate authority and thereafter before the Tribunal. Vide order dated 08-05-2013, the Tribunal restored the matter back to the assessing officer for fresh adjudication with certain directions. In pursuance to the directions of the Tribunal, the assessing officer framed a fresh assessment and while doing so he again treated the receipt shown from business as unexplained cash cred....
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.... salary paid to technical persons for developing software and payment of electricity bill clearly demonstrates that the assessee was carrying on business activity. He submitted, being completely swayed away by the report submitted by the Ward Inspector of the department and without making proper enquiry, the assessing officer has repeated the same addition. He submitted, since the assessee has furnished all supporting evidence to demonstrate carrying on business activity, the income shown under the head 'business' has to be accepted and the deduction claimed on account of depreciation, the expenses has to be allowed. Further, he submitted, assessee's claim of set off of brought forward business loss and unabsorbed depreciation should also b....
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....duct a field enquiry. In the report submitted, the Inspector has specifically stated that on a visit to assessee's business premises, he found that no business activity was carried on inside the premises and only some black and white television sets and electronic components were kept. Further, from local enquiry, he found that no business activity is being carried on from the said premises for last five to six years. 9. Refuting the allegations made by the Inspector in his report, the assessee had furnished submission dated 03-07-2013 before the assessing officer stating that portion of the said premises and for carrying out such activity, the assessee has employed two persons. The assessee has also referred to the software development ag....
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....terial. It is not understood, when the assessee has purchased the premises along with all the items like electronic components, TV sets, etc. where is the question of again allowing the erstwhile owner to store its materials. Further, the assessee has submitted that a part of the premises was let out to Crystal Software Solutions Ltd. Thus, the assessee has not come out clear on facts. 11. Further, we find various doubts raised by the assessing officer with regard to the technical capability of the concerned employees for developing software, lack of infrastructure, etc. have not been properly addressed by the assessee. At the same time, it is a fact on record that in course of assessment proceedings, the assessee has furnished a software ....