M/s Sharman Udyog Pvt. Ltd., Ludhiana V. DCIT, C-III, Ludhiana

ITA 1065/CHANDI/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 4924 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 2 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 09-08-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: G S PHANI KISHORE

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B, CHANDIGARH , ! '# $ % & '# , () BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO. 1065/CHD/2018 / ASSESSMENT YEAR : 2010-11 M/S SHARMAN UDYOG PVT LTD., D-43, PHASE V, FOCAL POINT, LUDHIANA THE DCIT, CENTRAL CIRCLE-III, LUDHIANA ./ PAN NO: AACCS5208F / APPELLANT / RESPONDENT ! / ASSESSEE BY : SHRI SUDHIR SEHGAL, ADVOCATE PROXY COUNSEL FOR SHRI AMARJIET KAMBOJ ' ! / REVENUE BY : SHRI G.S. PHANI KISHORE, CIT DR # $ % /DATE OF HEARING : 31.10.2019 &'() % / DATE OF PRONOUNCEMENT : 31.10.2019 (* / ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 11.6.2018 OF THE COMMISSIONER OF INCOME TAX (APPEALS)-5, LUDHIANA [HEREINAFTER REFERRED TO AS CIT(A)]. 2. AN ADJOURNMENT HAS BEEN SOUGHT BY THE LD. AUTHOR IZED REPRESENTATIVE IN THIS CASE, HOWEVER, AFTER GOING T HROUGH THE RECORD OF THE CASE, WE DEEM IT APPROPRIATE TO DECIDE THE CASE AFTER HEARING THE LD. ITA NO. 1065/CHD/2018- SHRI SHARMAN UDYOG PVT LTD., LUDHIANA 2 DR. HOWEVER, SHRI SUDHIR SEGHAL, LD. ADVOCATE VO LUNTARILY OFFERED TO ASSIST THIS COURT ON BEHALF OF THE ASSESSEE. 3. THE SOLE ISSUE RAISED IN THIS APPEAL IS RELATING TO THE ADHOC DISALLOWANCE MADE BY THE ASSESSING OFFICER AND CONF IRMED BY THE LD. CIT(A) OUT OF VEHICLE REPAIR & MAINTENANCE EXPENSES AND ALSO PROPORTIONATE DISALLOWANCE OF PERSONAL USE OF COMPA NY CAR. 4. WE HAVE HEARD THE RIVAL CONTENTIONS OF THE LD. R EPRESENTATIVES OF THE PARTIES AND GONE THROUGH THE RECORD. SHRI SUDH IR SEHGAL, LD. PROXY COUNSEL FOR THE ASSESSEE, AT THE OUTSET, INVITED OU R ATTENTION TO THE ORDER OF THE CIT(A), WHEREIN, IT HAS BEEN MENTIONED THAT VEHICLES WERE REGISTERED IN THE NAME OF THE ASSESSEE COMPANY AND THE PERQUISITE OF CAR USED BY THE DIRECTOR IS ADDED IN THEIR INDIVIDUAL INCOME-TAX RETURN. ONCE THE PREREQUISITE OF CAR HAS BEEN ADDED INTO TH E INCOME OF THE DIRECTOR AND THE VEHICLE WERE REGISTERED IN THE NAM E OF THE COMPANY, UNDER THE CIRCUMSTANCES, THE DISALLOWANCE ON ACCOUN T OF MAINTENANCE OF CAR OR PERSONAL USE OF THE DIRECTOR WAS NOT WARRANT ED. 4. IN VIEW OF THIS, WE DO NOT FIND ANY JUSTIFICATIO N ON THE PART OF THE LOWER AUTHORITIES TO MAKE THE IMPUGNED ADDITION. TH E SAME IS ACCORDINGLY ORDERED TO BE DELETED. ITA NO. 1065/CHD/2018- SHRI SHARMAN UDYOG PVT LTD., LUDHIANA 3 THE APPEAL OF THE ASSESSEE IS HEREBY ALLOWED. ORDER DICTATED AND PRONOUNCED IN THE OPEN COURT IMM EDIATELY ON COMPLETION OF HEARING. SD/- SD/- ( $ % & '# / ANNAPURNA GUPTA) () / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 31.10.2019 . . '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR