CENTRAL ENGINEERING WORKS, MUMBAI V. ASST CIT 13(2), MUMBAI

ITA 1523/MUM/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 100994 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 04-06-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 22-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PREMAND J
• Assessee Lawyers: PRIYANKA J MARU
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C, MUMBAI BEORE SHRI G.S.PANNU, ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA, JUDICIAL MEMBER ITA NO. 1523 /MUM/2011 (ASSESSMENT YEAR : 2007-08) M/S. CENTRAL ENGINEERING WORKS, KAVARNA BUILDING, 24-E, P.DMELLO ROAD, MUMBAI 400 009 PAN: AAAFC 0791N ... APPELLANT VS. THE ASSTT. COMMISSIONER OF INCOME TAX-13(2), MUMBAI 400 013 .... RESPONDENT APPELLANT BY : MS. PRIYANKA J. MARU RESPONDENT BY : SHRI PREMAND J. DATE OF HEARING : 07/07/2015 DATE OF PRONOUNCEMENT : 09/09/2015 ORDER PER G.S. PANNU,AM: THE CAPTIONED APPEAL BY THE ASSESSEE IS DIRE CTED AGAINST THE ORDER OF THE CIT(A)-24, MUMBAI DATED 22/12/2010 PERTAINING TO THE ASSESSMENT YEAR 2007-08, WHICH IN-TURN, HAS ARISEN FROM AN ORDER PASSED BY THE ASSESSING OFFICER DATED 09/12/2008 UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 ( IN SHORT T HE ACT). 2 ITA NO. 1523 /MUM/2011 (ASSESSMENT YEAR : 2007-08) 2. IN THIS APPEAL, THE ONLY GRIEVANCE OF THE ASSESS EE IS AGAINST THE ACTION OF THE CIT(A) IN UPHOLDING THE DISALLOWANCE OUT OF ELECTRICITY EXPENSES, MOTOR CAR EXPENSES AND DEPRECIATION ON MOTOR CAR @ 10% OF THE TOTAL EXPENSES. 2. IN BRIEF, THE RELEVANT FACTS ARE THAT THE ASSESS EE FIRM IS ENGAGED IN THE BUSINESS OF RECONDITIONING AND REPAIRING OF EN GINE PARTS, ETC. AND TRADING OF AUTO PARTS. THE ASSESSING OFFICER DISAL LOWED 20% OF EXPENSES ON ACCOUNT OF ELECTRICITY EXPENSES OF RS.2,31,642/ -, MOTOR CAR EXPENSES OF RS.2,49,342/- AND DEPRECIATION ON MOTOR CAR OF RS.1,46,449/-, THEREBY RESULTING IN AN ADHOC DISALL OWANCE OF RS.1,25,487/-. THE CIT(A) HAS REDUCED IT TO 10%, AG AINST WHICH ASSESSEE IS IN APPEAL BEFORE US. 3. LD. REPRESENTATIVE FOR THE ASSESSEE POINTED OUT THAT RS.25,000/- WAS ALREADY SUO-MOTO DISALLOWED BY THE ASSESSEE OUT OF MOTOR CAR EXPENSES IN THE COMPUTATION OF INCOME AND NO FURTHE R DISALLOWANCE WAS JUSTIFIED. 4. HAVING CONSIDERED THE RIVAL SUBMISSIONS, WE FIND THAT THE ENTIRE DISALLOWANCE IS BASED ON MERE CONJECTURES AND SURMI SES WITHOUT ANY SPECIFIC INFIRMITY HAVING BEEN POINTED OUT BY THE ASSESSING OFFICER. THEREFORE, WE SET ASIDE THE IMPUNGED DISALLOWANCE A ND DIRECT THE ASSESSING OFFICER TO RETAIN THE DISALLOWANCE OF RS. 25,000/- ONLY, WHICH WAS SUO-MOTO DISALLOWED BY THE ASSESSEE WITH RESPECT TO THE P ERSONAL EXPENSES UNDER THE HEAD MOTOR CAR. 3 ITA NO. 1523 /MUM/2011 (ASSESSMENT YEAR : 2007-08) 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 09/09/2015 . SD/- SD/- (AMIT SHUKLA) (G.S. PANNU) JUDICIAL MEMBER ACCOUNTANT MEMB ER MUMBAI,DATED /09/2015 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A)- 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBA I VM , SR. PS