Shri Lalit Kumar Agarwal, Sriganganagar V. ACIT, Central Circle, Bikaner

ITA 148/JODH/2018

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 6243 (ITAT-JODHPUR)
• Duration Of Justice: 1 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 03-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHOK KHANNA
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH (SMC), JODHPUR BEFORE SHRI R.C. SHARMA, ACCOUNTANT MEMBER ITA NO. 148/JODH/2018 (ASSESSMENT YEAR-2013-14 SHRI LALIT KUMAR AGARWAL, 1-G-9, JAWAHAR NAGAR, SRIGANGANAGAR. VS A.C.I.T., CENTRAL CIRCLE, BIKANER. (APPELLANT) (RESPONDENT) PAN: ABZPK 1700 D ASSESSEE BY NONE REVENUE BY SH. ASHOK KHANNA JCIT DR DATE OF HEARING 24/05/2018 DATE OF PRONOUNCEMENT 25/05/2018 O R D E R PER: R.C. SHARMA, AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A)-IV, JAIPUR DATED 02/02/2018 FOR THE A .Y. 2013- 14 IN THE MATTER OF ORDER PASSED BY THE ASSESSING O FFICER U/S 143(3) OF THE INCOME-TAX ACT, 1961 [HEREINAFTER REF ERRED TO AS THE ACT, FOR SHORT]. 2. NO BODY APPEARED ON BEHALF OF THE ASSESSEE. MORE OVER, NOBODY WAS THERE TO PROSECUTE THE ADJOURNMENT PETITION SO F ILED. ACCORDINGLY, 2 ITA 148/JODH/2018 LALIT KR. AGARWAL VS ACIT THE BENCH DECIDED TO DISPOSE OFF THE APPEAL AFTER C ONSIDERING THE CONTENTION OF THE LD. DEPARTMENTAL REPRESENTATIVE A ND THE MATERIAL PLACED ON RECORD. 3. THE ONLY GRIEVANCE OF THE ASSESSEE RELATES TO DISALLOWANCE OF INTEREST EXPENSES OF RS. 4,73,946/- . 4. I HAVE GONE THROUGH THE ORDERS OF THE AUTHORITIE S BELOW AND FOUND THAT THE ASSESSEE IS ENGAGED IN THE BUSIN ESS OF GRAIN MERCHANT AND COMMISSION AGENT. DURING THE COU RSE OF SCRUTINY ASSESSMENT, THE ASSESSING OFFICER DISALLOW ED INTEREST ON THE CAR LOAN AND ALSO PART OF THE DEPRECIATION O N THE CAR SO USED FOR THE PURPOSE OF BUSINESS. IT WAS THE CONTEN TION OF THE ASSESSING OFFICER THAT THE PERSONAL USE OF CAR CANN OT BE DECLINED, ACCORDINGLY, 1/5 TH CLAIM OF DEPRECIATION WAS DECLINED. 5. BY THE IMPUGNED ORDER, THE LD CIT(A) HAS DELETED THE DISALLOWANCE OF DEPRECIATION AFTER OBSERVING AS UND ER: 6. WITH REGARD TO THIS GROUND I FIND THE APPELLANT HA SHOWN HE PURCHASE OF CAR IN THE FIXED ASSETS AND EVIDENCES OF THE SAME HAVE BEEN PLACED ON RECORD. SINCE CAR HAS BEEN USED FOR BUSINESS PURPOSE, 3 ITA 148/JODH/2018 LALIT KR. AGARWAL VS ACIT EVEN ADMITTED BY A.O. IN HIS ORDER, AD HOC DISALLOWANCE OF RS. 1,34,482/- IS NOT TENABLE. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE SAME IS DIRECTED TO BE DELETED. APPELLANTS APPEAL IN GROUND NO. 2 IS ALLOWED. HOWEVER, THE DISALLOWANCE OF INTEREST ON CAR LOAN WAS CONFIRMED BY THE LD. CIT(A) AGAINST WHICH THE ASSESSEE IS IN FURTHER APPEAL BEFORE THE ITAT. HOWEVER, THE DEPARTMENT IS NOT IN APPEAL BEFOR E THE ITAT AGAINST DELETION OF DISALLOWANCE OF ASSESSEES CLAIM OF DEPR ECIATION ON THE VERY SAME CAR. 6. I FIND THAT THE ASSESSEE HAS TAKEN A LOAN FROM B ANK FOR PURCHASE OF CAR WHICH HAS BEEN USED BY THE ASSESSEE IN HIS BUSIN ESS. INTEREST SO PAID TO THE BANK WAS CLAIMED IN P&L ACCOUNT. THIS FACT HA S NEITHER DECLINED BY THE ASSESSING OFFICER NOR BY THE LD. CIT(A) EVEN THE PART DISALLOWANCE OF DEPRECIATION ON THE CAR WAS DELETED BY THE LD. CI T(A) AFTER OBSERVING THAT SINCE THE CAR HAS BEEN USED FOR BUSINESS PURPO SE, NO DISALLOWANCE OF DEPRECIATION IS WARRANTED. THE LD. CIT(A) HAS CAT EGORICALLY RECORDED A FINDING TO THE EFFECT THAT THE ASSESSING OFFICER HI MSELF HAS ACCEPTED USE OF CAR FOR THE PURPOSE OF BUSINESS. UNDER THESE FAC TS AND CIRCUMSTANCES, THERE IS NO JUSTIFICATION FOR DECLINE OF INTEREST O N THE CAR LOAN, WHICH WAS TAKEN FOR PURCHASE OF CAR HAVING BEEN USED FOR THE PURPOSE OF BUSINESS. 4 ITA 148/JODH/2018 LALIT KR. AGARWAL VS ACIT ACCORDINGLY, THE ASSESSING OFFICER DIRECTED TO DELE TE THE DISALLOWANCE OF INTEREST EXPENSES ON CAR LOAN. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 25/05/2018. SD/- [R.C. SHARMA] ACCOUNTANT MEMBER DATED : 25/05/2018 *RANJAN COPY TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR 6. GUARD FILE (ITA NO. 148/JODH/2018) ASSISTANT REGISTRAR JODHPUR BENCH