ACIT Cir-7, Pune V. Talera Motors Pvt. Ltd., Pune

ITA 1208/PUN/2009

• Counselvise Citation: 120824514 RSA 2009
• Duration Of Justice: 1 year(s) 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-05-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 08-10-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S C SHIVAGANDE
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV, JM AND SHRI G.S. PANNU, AM. I.T.A. NO. 1208/PN/2009 : A.Y. 2006-07 ASSTT. CIT CIR. 7, PUNE .. APPELLANT VS. TALERA MOTORS PVT. LTD., 14 MOTILAL TALERA ROAD, PUNE-411 001 PAN AABCT 5974E .. RESPONDENT APPELLANT BY: SHRI S.C. SHIVAGANDE RESPONDENT BY: SHRI NIKHIL PATHAK ORDER PER SHAILNDRA KUMAR YADAV, JM THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A)-III PUNE DATED 24-7-2009 FO R A.Y. 2006-07 ON THE ISSUE AS TO WHETHER THE CIT(A) HAS E RRED IN ALLOWING THE CLAIM OF DEPRECIATION ON VEHICLES O WNED BY THE DIRECTORS OF THE ASSESSEE. 2. THE ASSESSEE COMPANY IS INTO DEALERSHIP OF GENER AL MOTOR CARS. THE ASSESSING OFFICER NOTICED THAT ASS ESSEE HAS CLAIMED DEPRECIATION OF RS. 8,61,227/- ON VEHIC LES CALLED DEMO CARS PURCHASED IN THE NAME OF DIRECTORS . THE ASSESSING OFFICER HELD THAT THOUGH THE VEHICLES WERE USED BY THE COMPANY FOR THE PURPOSES OF BUSINESS, T HEIR OWNERSHIP DID NOT LIE WITH THE ASSESSEE. ACCORDING LY, HE ITA NO. 1208/PN/2009 TALERA MOTORS PVT. LTD., A.Y. 2006- 07 2 DISALLOWED THE ASSESSEES CLAIM OF DEPRECIATION OF RS. 86,21,227/-. ON APPEAL, THE CIT(A) FOLLOWING TH E DECISION OF TRIBUNAL PUNE BENCH IN THE CASE OF ROHA N BUILDERS AND DEVELOPERS PVT. LTD. VS. ACIT IN ITA N O. 942/PN/2006 FOR A.Y. 2004-05 DATED 29-8-2008 ALLOWE D THE CLAIM OF THE ASSESSEE. 3. BEING AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE US. THE LEARNED DR RELIED ON THE ORDER OF THE ASSESSING OFFICER WHILE THE LEARNED COUNSEL FOR THE ASSESSEE PLACED RELIANCE ON THE ORDER OF THE CIT(A). HE HAS ALSO P LACED RELIANCE ON THE DECISION OF PUNE BENCH OF THE TRIBU NAL IN THE CASE OF ITO VS. SUMA SHILP LTD. IN ITA NO. 1 062 AND 1063/PN/2009 FOR A.Y. 2005-06 AND 2006-07 DATED 31-1-2011 WHEREIN FOLLOWING THE DECISION OF THE TRI BUNAL IN THE CASE OF ROHAN BUILDERS AND DEVELOPERS PVT. L TD (SUPRA) DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. 4. AFTER HEARING BOTH THE PARTIES AND PERUSING THE MATERIAL ON RECORD, WE FIND THAT THE ISSUE RAISED I N THIS APPEAL IS SQUARELY COVERED BY THE DECISION OF PUNE BENCH OF THE TRIBUNAL IN THE CASE OF ROHAN BUILDERS AND DEVELOPERS PVT. LTD. (SUPRA) WHEREIN IT HAS BEEN HE LD THAT THE DEPRECIATION WAS ALLOWABLE TO THE ASSESSEE IN ITA NO. 1208/PN/2009 TALERA MOTORS PVT. LTD., A.Y. 2006- 07 3 RESPECT OF THE MOTOR CARS PURCHASED BY IT AND USED FOR THE PURPOSE OF ITS BUSINESS, THOUGH REGISTERED IN T HE NAME OF THE MANAGING DIRECTOR. IN THE PRESENT CASE , THE ASSESSEE PURCHASED THE VEHICLES CALLED DEMO CARS IN THE NAME OF THE DIRECTORS THOUGH OWNERSHIP THEREOF DID NOT LIE WITH THE ASSESSEE. THE FACTS OF THE PRESENT CA SE ARE IN PARI MATERIA WITH THOSE IN THE CASE OF ROHAN BUI LDERS AND DEVELOPERS PVT. LTD (SUPRA). SO, RESPECTFULLY FOLLOWING THE SAID DECISION OF THE TRIBUNAL, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A) IN AL LOWING THE CLAIM OF THE ASSESSEE. WE UPHOLD THE SAME. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 11 TH DAY OF MAY 2011. SD/- SD/- (G.S. PANNU) ACCOUNTANT MEMBER (SHAILENDRA KUMAR YADAV) JUDICIAL MEMBER PUNE: DATED: 11 TH MAY, 2011 ANKAM COPY OF THE ORDER IS FORWARDED TO : 1. ASSESSEE 2. DEPARTMENT 3. THE CIT(A) III PUNE 4. THE CIT, - V PUNE 5. THE D.R, A BENCH, PUNE TRUE COPY BY ORDER ITA NO. 1208/PN/2009 TALERA MOTORS PVT. LTD., A.Y. 2006- 07 4 ASSISTANT REGISTRAR ITAT, PUNE BENCHES, PUNE