2021 (8) TMI 301

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....espectively on which depreciation of Rs. 21,17,839/- was claimed. The assessee in the computation of income suo motu disallowed a sum of Rs. 50,000/- towards personal expenses on the use of car. The AO observed that the assessee did not make any disallowance of depreciation on account of personal use of vehicles. He, therefore, disallowed 20% of depreciation on these two cars amounting to Rs. 4,23,567/-. The ld. CIT(A) sustained the addition, against which the assessee has come up in appeal before the Tribunal. 3. Having heard both the sides through Virtual Court and gone through the relevant material on record, it is seen that the assessee is a partnership firm. There is no dispute on the fact that the assessee did use the vehicles for pe....

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....t rates, the assessee made three broader submissions, namely, Difference in land cost; Difference in sale rate per sq.ft.; and Difference in cost of construction. The AO accepted the assessee's contention regarding difference in land cost and difference in sale rate per sq.ft. He, however, observed that there could be no difference in the cost of construction per sq.ft. in both the projects. It was thus found that the assessee showed cost of construction excluding the land cost under Hi Bliss project at Rs. 1483/- per sq.ft. whereas similar cost per sq.ft. in Gold Ember was Rs. 1531/- per sq.ft. The differential amount of Rs. 48/-, i.e. 3.23% was multiplied with the area constructed at 44071 sq.ft. to work out the addition of Rs. 21,15,552....

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....ing out any mistake therein. We are of the considered opinion that no addition is called for on this score. The addition is hereby deleted. 6. The last issue raised in this appeal is against the confirmation of addition of R.30,77,616/- towards loss on account of embezzlement. The factual matrix of this ground is that the assessee debited a sum of Rs. 30.77 lakh to its Profit and Loss Account towards loss due to embezzlement. On being called upon to furnish the details of the parties from whom the cash was collected which was claimed to have been embezzled by Shri Rahul Kulkarni, the assessee submitted certain details by putting forth that Shri Rahul Kulkarni was working as Marketing Officer for last three years. He collected cash from va....

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.... also been placed on record. Our attention was also drawn towards accounts of the parties from whom cash was collected by Shri Rahul Kulkarni. The amounts so collected and embezzled by Shri Rahul Kulkarni have been credited to the respective parties' accounts with the debit to loss on embezzlement account. Before such entries, the assessee debited full amount of sales including the amount embezzled to the accounts of respective parties accounts, which was credited to the Sales account. It means that the amount embezzled by Shri Rahul Kulkarni has been accounted for in the figure of Sales offered by the assessee and since the amount was embezzled, the assessee claimed a deduction for the same. On a specific query, the ld. AR submitted that....