Satish Sudarshan Lade, Nagpur V. Assistant Commissioner of Income Tax,Circle-2, Nagpur

ITA 157/NAG/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 1908 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 18-11-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A K DAHARIA
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR E-BENCH, NAGPUR (THROUGH VIDEO CONFERENCE AT MUMBAI) . . , . / , . . BEFORE SHRI R.K. GUPTA, JUDICIAL MEMBER /AND SHRI RAJENDRA, ACCOUNTANT MEMBER . / ITA NO. 157/NAG/2011 / ASSESSMENT YEAR 2007-08 SATISH SUDARSHAN LADE, C/O. GONDWANA FINANCE COMPANY, 84, YASHWANT STADIUM, DHANTOLI, NAGPUR 440 012. PAN: AAMPL 0338 E VS. ASST. COMMISSIONER OF INCOME TAX, CIRCLE-2, NAGPUR. ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : NONE ! / RESPONDENT BY : SHRI A.K. DAHARIA (DCIT) ' ! #$% / DATE OF HEARING : 22-01-2013 &' ! #$% / DATE OF PRONOUNCEMENT : 22-01-2013 () / O R D E R PER RAJENDRA, AM THE ASSESSEE HAS FILED FOLLOWING GROUNDS OF APPEAL AGAINST THE ORDER DT. 11-08-2011 OF THE CIT(A)-I, NAGPUR: I. THE FACTS OF THE CASE AND PROVISIONS OF ACT HAVE BE EN COMPLETELY IGNORED. THEREBY LEGITIMATE DEPRECIATION AND INTEREST ON CAR LOAN HAVE BEEN DISALLOWED. II. DEPRECIATION AND INTEREST ON CAR LOAN IS DISALLOWED ON THE HYPOTHESIS THAT PARTNERSHIP DEED DOES NOT ENTITLE THE ASSESSEE TO C LAIM DEPRECIATION. III. DEPRECIATION AND INTEREST ON CAR LOAN IS DISALLOWED ON THE HYPOTHESIS THE CARS ARE RENTED OUT. IV. LEGITIMATE INTEREST PAID ON LOANS USED FOR THE PURP OSE OF BUSINESS SHAVE BEEN DISALLOWED. ITA NO. 157/NAG/2011 SATISH SUDARSHAN LADE 2 V. THE CIT(APPEALS) ORDER SEEKS TO WIPE OUT DIFFERENCE IN SECTION 28(I) AND SECTION 28(II) OF THE ACT. IT RULES THAT INCOME RE CEIVED FROM ACTIVITY NOT CARRIED ON BY ASSESSEE IS LIABLE TO BE COUNTED AS G ROSS TURNOVER U/S. 44AB. FURTHER, IT HAS ASKED ASSESSING OFFICER TO INITIATE PENALTY PROCEEDINGS U/S. 271B OF THE ACT. VI. THE ASSESSMENT SEEKS TO SAY THAT BUSINESS CAN NOT B E CONSIDERED TO HAVE BEEN CARRIED ON UNLESS AUDIT U/S. 44AB IS CONDUCTED. TH EREFORE LEGITIMATE EXPENSES LIKE INTEREST ON LOANS AND BUSINESS PROMOT ION EXPENSES ARE DISALLOWED. 2. ASSESSEE WAS INFORMED THAT MATTER WILL BE HEARD ON 22-01-2013. BUT, NO ONE APPEARED ON BEHALF OF ASSESSEE, NOR THERE IS ANY AP PLICATION FOR ADJOURNMENT. IN VIEW OF ABOVE, IT APPEARS THAT ASSESSEE IS NOT INTEREST ED IN PROSECUTING THIS APPEAL. HENCE THIS APPEAL OF THE ASSESSEE IS LIABLE TO BE DISMISS ED FOR NON- PROSECUTION. IN THIS REGARD, WE ARE SUPPORTED BY THE DECISION IN THE CAS E OF CIT VS. B.N. BHATTACHARGEE AND ANOTHER, REPORTED IN 118 ITR 460 (RELEVANT PAG ES 477 & 478) WHEREIN THEIR LORDSHIPS HAVE HELD THAT: THE APPEAL DOES NOT MEAN MERELY FILING OF THE AP PEAL BUT EFFECTIVELY PURSUING IT. 3. IN THIS REGARD WE ARE ALSO SUPPORTED BY THE DECISIO N IN THE CASE OF CIT VS MULTIPLAN INDIA (P) LTD., 38 ITD 320 (DEL). IT(SS )A NO. 01/MUM/2008 SUNNY SOUNDS P. LTD., 4. IN VIEW OF THE ABOVE, AND ALSO CONSIDERING THE PROV ISION OF RULE 19 OF THE APPELLATE TRIBUNAL RULES, 1963, APPEAL OF THE ASSES SEE IS DISMISSED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED FOR NON- PROSECUTION. AS A RESULT, APPEAL FILED BY THE ASSESSEE STANDS D ISMISSED. * +, - *# / (01 ! ' +23 ! # 45. ORDER PRONOUNCED BY E-BENCH AT MUMBAI ON THIS 22 ND DAY OF JANUARY, 2013 +7' 0,# ' - 789 / 22 $ 2013 ' () &':# ; . SD/- SD/- ( . . / R.K. GUPTA ) ( / RAJENDRA ) (, / JUDICIAL MEMBER % (, / ACCOUNTANT MEMBER +7' MUMBAI, ;( DATE: 22 ND JANUARY, 2013 TNMM ITA NO. 157/NAG/2011 SATISH SUDARSHAN LADE 3 COPY TO: 1. APPELLANT 2. RESPONDENT 3. THE CONCERNED CIT (A) 4. THE CONCERNED CIT 5. DR, ITAT, NAGPUR 6. GUARD FILE :# # //TRUE COPY// BY ORDER, ASST. REGISTRAR, ITAT