INCOME TAX ACT, 1961

Section 143(3)

Assessment - Additions to income - Lower net profit as compared to preceding year - AO failed to take note of increase in depreciation expenditure

AO noticed lower net profit declared by assessee as compared to preceding year and accordingly, made addition. Assessee's case was that main reason for lower net profit was increase in depreciation expenditure preceding year.Held: The fact of increase in depreciation expenditure as compared to preceding year remained unattended by AO. As there was no justification with AO ignoring the material facts and making addition for lower net profit, the same deserved to be deleted.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13

INCOME TAX ACT, 1961

Section 133A

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