M/S APOLLO TYRES LTD. V. THE DEPUTY COMMISSIONER OF INCOME TAX

ITA/274/2013

AI Insights

The case involves M/s Apollo Tyres Ltd., the appellant, contesting an order from the Income Tax Appellate Tribunal, Cochin Bench, which pertained to the Assessment Year 2006-07. The primary issues were the disallowance of part depreciation on a building in Gurgaon that was partially let out and the disallowance of club expenses amounting to 50,09,299/-. The Tribunal's decision was challenged in this appeal, but the High Court of Kerala at Ernakulam upheld the Tribunal's decision, referencing a similar case (ITA No.26/2013) where the appeal was dismissed.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 752641 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 30-07-2021
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: JOSEPH MARKOSE; V ABRAHAM MARKOS; ABRAHAM JOSEPH MARKOS; ABRAHAM VARGHESE THARAKAN; BINU MATHEW; TOM THOMAS KAKKUZHIYIL
• Keywords: Block of assets; Club expenses; Disallowance of depreciation; Income tax appellate tribunal
• Section: 147; 148; 143(3); 153A; 68

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS FRIDAY, THE 30TH DAY OF JULY 2021 / 8TH SRAVANA, 1943 ITA NO. 274 OF 2013 AGAINST THE ORDER IN ITA 74/2010 OF I.T.A.TRIBUNAL,COCHIN BENCH, ERNAKULAM APPELLANT/S: M/S APOLLO TYRES LTD. 6TH FLOOR, CHERUPUSHPAM BUILDINGS, SHANMUGHAM ROAD, KOCHI - 31. (PAN NO:AAACA6990Q) BY ADVS. SRI.JOSEPH MARKOSE (SR.) SRI.V.ABRAHAM MARKOS SRI.ABRAHAM JOSEPH MARKOS SRI.ABRAHAM VARGHESE THARAKAN SRI.BINU MATHEW SRI.TOM THOMAS KAKKUZHIYIL RESPONDENT/S: THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 1(1), RANGE 0 1, KOCHI - 682 018. BY ADV CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT THIS INCOME TAX APPEAL HAVING COME UP FOR HEARING ON 30.07.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: I.T.A. No.274/2013 -2- J U D G M E N T S.V.Bhatti, J. Heard learned Senior Counsel Mr. Joseph Markos and learned Standing Counsel Mr. Christopher Abraham for parties. 2. M/s.Apollo Tyres Ltd., Kochi/Assessee is the appellant. The Deputy Commissioner of Income Tax/Revenue is the respondent. The subject appeal is at the instance of Assessee from the order of Income Tax Appellate Tribunal (for short ‘the Tribunal') Cochin Bench in ITA No.74/Coch/2010 dated 29.05.2013. The controversies relate to the Assessment Year 2006-07. The appeal deals with the questions of disallowance made by the Tribunal of the expenditure incurred by the assessee towards club expenses and disallowance of part of depreciation of Gurgaon building. I.T.A. No.274/2013 -3- 2.1 The substantial questions read as follows: “1. Whether on the facts and in the circumstances of the case the Tribunal is justified in law and on facts in sustaining the disallowance of part depreciation of Gurgaon office building aggregating to 18,93,581/- in relation to let out portion to Apollo International Ltd. 2. Whether on the facts and in the circumstances of the case. the Tribunal is justified in law and on facts in sustaining the disallowance of part depreciation ignoring the fact that concept of block of assets had been inserted in the Act and individual items included in the block are not to be considered separately for the purposes of granting depreciation. 3. Whether on the facts and in the circumstances of the case the Tribunal is justified in law and on facts in restoring the issue of deduction of club expenses of 50,09,299/- to the AO for fresh ₹ determination in the light of its order for assessment year 2005-06.” 3. The assessee, raising similar questions of law, filed ITA No.26/2013 for the Assessment Year 2003-04. By a separate order the appeal has been dismissed. The reasons stated in ITA No.26/2013 are adopted while considering and disposing of the I.T.A. No.274/2013 -4- substantial questions framed in this appeal as well. Hence, the questions are answered in favour of the Revenue and against the assessee. Appeal fails, dismissed accordingly. No order as to costs. Sd/- S.V.BHATTI JUDGE Sd/- BECHU KURIAN THOMAS JUDGE jjj I.T.A. No.274/2013 -5- APPENDIX OF ITA 274/2013 PETITIONER ANNEXURE ANNEXURE A TRUE COPY OF THE ASSESSMENT ORDER DATED 19/12/2008 OF THE 1ST RESPONDENT. ANNEXURE B TRUE COPY OF THE APPELLATE ORDER DATED 30/11/2009 OF THE COMMISSIONER OF INCOME TAX (APPEALS)II, KOCHI. ANNEXURE C TRUE COPY OF THE IMPUGNED ORDER DATED 29/05/2013 OF THE INCOME TAX APPELLATE TRIBUNAL, KOCHI BENCH. "