Brief Facts of the Assessee:
There are 3 matters involved in the appeal filed.
- 1st Matter – The assessee is engaged in the business of printing & publishing of Newspaper and Periodicals. During the course of Assessment, the Assessing Officer (herewith “AO) noticed that the assessee had claimed other expenses /general expenses for which no complete bills and vouchers were maintained by the assessee. The AO held that no verification was possible to judge whether all expenses have been incurred for the purpose of business only. Hence, a lump sum addition of Rs. 5,00,000/- was made by the AO.
- 2nd Matter – The Assessee had debited to P&L Account towards Marketing and Survey expenses. The AO selected certain parties and had asked the assessee to produce them for verification which the assessee failed to produce. The assessee had squarely failed to put forth even any reliable document/evidence in respect of the parties which could bear substance of authenticity. Hence, AO disallowed the expenses to the extent of Rs. 67,73,510/-.
- 3rd Matter – The Assessee had installed machinery for printing of newspapers on which he claimed additional depreciation under section 32(1)(iia) of the Income Tax Act (herewith “the Act”) over and above the normal depreciation. The AO held that the assessee did not manufacture or produce any article or thing. Simply printing the newspaper cannot be termed as manufacture or production. Therefore, he disallowed the additional depreciation claimed by the assessee of Rs. 54,34,045/-.
Held by CIT (A):
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