CIT justified in disallowing depreciation on Plant & Machinery, Purchase of which was already treated as Bogus by AO

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 purchase...