Case Law Details
Lahari Laminates Pvt. Ltd. Vs DCIT (ITAT Raipur)
With reference to the first issue i.e. incorrect allowance of depreciation of Rs.59,45,940/- on bogus purchase of Plant & Machinery, the learned counsel for the assessee fairy submitted that where the A.O. has made disallowance on Plant & Machinery, it was permissible for the A.O. to disallow the consequential depreciation within the scope of section 147 of the Act. The issue being connected to the subject matter of reassessment, the action of the PCIT cannot be faulted per se without prejudice to the contentions on bonafides of purchases in the regular appellate proceedings.
In the wake of averments made on behalf of the assessee and having regard to the fact of additions carried out towards bogus Plant & Machinery in the assessment order, the A.O. has definitely committed error in not giving consequential effect to such action and thus failed to disallow depreciation as well. We thus see no reason to interfere with the directions given by the PCIT to the A.O. in this regard.
FULL TEXT OF THE ORDER OF ITAT RAIPUR
The captioned appeal has been filed at the instance of the assessee against the revisional order of the Principal Commissioner of Income Tax (PCIT in short), Raipur communicated to assessee on 28.03.2021 passed under section 263 of the Income Tax Act, 1961 (the Act in short) whereby the assessment order passed by the Assessing Officer (A.O.) dated 29.12.2018 under section 143(3) of the Act concerning Assessment Year (A.Y.) 2011-12 was sought to be set aside for reframing the assessment in terms of supervisory jurisdiction.
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