Indo American Optics Ltd., Ahmedabad V. The DCIT, Circle 4, Ahmedabad

ITA 1598/AHD/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0265 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-10-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 17-10-2016
• Assessment Year: 1995-1996
• Appeal Filed On: 30-05-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PRADIPKUMAR MAJUMDAR
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENC H (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI S. S. GODARA, JUDICIAL MEMBER) ITA. NO: 1598/AHD/2013 (ASSESSMENT YEAR: 1995-96) INDO AMERICAN OPTICS LTD. IOL HOUSE, NR. SWATI APARTMENTS, AMBAWADI, AHMEDABAD- 380015 DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-4, AHMEDABAD (APPELLANT) (RESPONDENT) PAN: AAACI4390L APPELLANT BY : SHRI ANIL KSHATRIYA, AR RESPONDENT BY: SHRI PRADIPKUMAR MAJUMDAR, SR. D.R . ( )/ ORDER DATE OF HEARING : 17 -10-201 6 DATE OF PRONOUNCEMENT : 20-10-2016 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF LD. CIT(A)-VIII, AHMEDABAD DATED 15.03.2013 PERTAINING TO A.Y. 1995- 96. ITA NO1598/A HD/2013 . A.Y. 1995-9 6 2 2. THE ASSESSEE IS AGGRIEVED BY THE DISALLOWANCES/ADDI TIONS MADE BY THE A.O. VIDE ORDER DATED 30.03.1998 MADE U/S. 143(3) OF THE ACT. WHILE COMPLETING THE ASSESSMENT, THE A.O. HAD MADE FOLLOWING ADDITIO NS/DISALLOWANCES:- I) DISALLOWANCE OF CASH PAYMENT EXCEEDING RS. 10,000/- RS. 4,35,625/- II) ENTERTAINMENT EXPENSES RS. 15,000/- III) VEHICLE EXPENSES RS. 20,000/- IV) INTEREST PAYMENT RS. 1,64,878/- V) OTHER EXPENSES RS. 30,000/- VI) DEPRECIATION ON VEHICLES RS. 44,505/- TOTAL RS. 7,10,008/- 3. SIMILAR ADDITIONS/DISALLOWANCES WERE MADE IN THE FI RST ROUND OF LITIGATION WHERE THE MATTER TRAVELLED UP TO THE TRIBUNAL AND T HE TRIBUNAL VIDE ORDER DATED 10.03.2006 IN ITA NO. 494/AHD/2001 HAD SET AS IDE THE MATTER TO THE FILES OF THE LD. CIT(A) FOR GIVING ANOTHER OPPORTUN ITY TO THE ASSESSEE. 4. WE FIND THAT IN SPITE OF SIX NOTICES, THE ASSESSEE TOOK ADJOURNMENT ON ALL THE OCCASIONS AND THE FIRST APPELLATE AUTHORITY WAS LEFT WITH NO CHOICE BUT TO DECIDE THE APPEAL EX PARTE AND CONFIRMED THE ADD ITIONS/DISALLOWANCES MADE BY THE A.O. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE STATED THAT THE ISSUE MAY BE DECIDED ON COMPASSIONATE GROUND. WE FI ND THAT THE ASSESSEE/ APPELLANT IS A LISTED PUBLIC LTD. COMPANY, THEREFOR E, THERE CANNOT BE ANY PERSONAL ELEMENT SO FAR AS VEHICLE EXPENSES AND DEP RECIATION ON VEHICLES ITA NO1598/A HD/2013 . A.Y. 1995-9 6 3 ARE CONCERNED. WE, ACCORDINGLY, DIRECT THE A.O. TO DELETE THE ADDITION OF RS. 20,000/- AND 44,505/-. 5. THIS LEAVES WITH THE BALANCE OF RS. 6,45,503/-. TH E LD. COUNSEL AGREED FOR UPHOLDING THE DISALLOWANCE @ 50% I.E. RS. 3,22,751/ -. TO PUT AN END TO UNNECESSARY PROLONG LITIGATION, WE DIRECT THE A.O. TO RESTRICT THE DISALLOWANCES/ ADDITIONS TO RS. 3,22,751/-. THE AS SESSEE WILL GET PART RELIEF AND THE APPEAL BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 20 - 10- 2016 . SD/- SD/- (S. S. GODARA) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: TRUE COPY RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD