GURJEET SINGH DHANOA, BILASPUR(CG) V. INCOME TAX OFFICER WARD 1(1), BILASPUR(CG)

ITA 190/BIL/2011

• Counselvise Citation: 19024714 RSA 2011
• Duration Of Justice: 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 19-09-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A K JAIN
• Assessee Lawyers: SUDHIR KUMAR
• Keywords: Capital asset
• Section: 69C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BILASPUR BE NCH BILASPUR BEFORE SHRI SHAILENDRA KUMAR YADAV (J.M) & SHRI R.K.PANDA(A.M) ITA NO. 190/BLPR/2011(A.Y.2006-07) GURJEET SINGH DHANOA, HIG-49, ARYA COLONY, TIFRA, BILASPUR (CG) AAZPD4322M (APPELLANT) VS. THE INCOME TAX OFFICER, WARD 1(1), BILASPUR(CG) (RESPONDENT) APPELLANT BY : SHRI SUDHIR KUMAR RESPONDENT BY : SHRI A.K.JAIN DATE OF HEARING : 09/02 /2012 DATE OF PRONOUNCEMENT : 10/0 2/2012 ORDER PER SHAILENDRA KUMAR YADAV, J.M, THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A), BILASPUR (CG) DATED 26/06/2011 FOR THE AS SESSMENT YEAR 2006-07. THE GROUNDS RAISED BY THE ASSESSEE READ AS FOLLOWS: 1. THAT THE HONBLE CIT (APPEAL) HAS ERRED IN CONF IRMING THE ADDITION OF RS. 44757/- ON ACCOUNT OF REGISTRATION FEE AND INSURANCE WHICH IS ALREADY SHOWN IN P&L ACCOUNT. WH ICH IS BAD IN LAW AS WELL AS OF THE FACTS. 2. THAT THE HONBLE CIT(APPEALS) HAS ERRED IN CONFI RMING ADDITION OF RS. 10,000/- FOR ACCESSORIES FOR NEW TR UCK WHICH IS BAD IN LAW AS WELL AS OF THE FACTS. ( ITA NO. 190/BLPR/2011(A.Y. 2006-07) ) 2 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E DERIVES INCOME FROM PLYING AND HIRING OF GOODS CARRIAGE. THE RETU RN OF INCOME U/S. 44AE WAS FILED DISCLOSING TOTAL INCOME AT RS. 1,64, 150/-. THE AO FOUND THAT THE ASSESSEE HAS PURCHASED ACCESSORIES L IKE TAPE RECORDER, SEAT COVER, TARPAULIN ETC. WORTH RS. 10,0 00/- AND PAID REGISTRATION AND INSURANCE FEE OF RS.44,757/- FOR TWO NEW TRUCKS ADDED TO HIS BLOCK OF ASSETS DURING THE YEAR UNDER CONSIDERATION. THE STAND OF THE ASSESSEE WAS THAT THE SOURCE OF SUCH INVESTMENT TOTALING TO RS. 54,757/- HAS BEEN MET OUT FROM THE INCOME DERIVED FROM THE SAID TRUCK AND THE EXPENSES ARE COVERED UN DER THE SCHME OF SECTION 44AE OF THE ACT. THE AO DID NOT ACCEPT THE EXPLANATION OF THE ASSESSEE AND MADE THE ADDITION BY INVOKING PROVISIONS OF SECTION 69C OF THE ACT. THE STAND OF THE ASSESSEE HAS BEEN THAT THE INVESTMENT IN QUESTION HAS BEEN MADE OUT FROM T HE INCOME DERIVED FROM THE INCOME DERIVED FROM THE TRUCKS. T HIS ARGUMENT OF LD. A.R HAS NOT BEEN ACCEPTED BY THE AO. ACCORDIN G TO THE LD. COUNSEL FOR THE ASSESSEE THIS AMOUNT HAS BEEN CLAIM ED FROM THE HIRING CHARGES PAID TO TRUCK OWNERS. THE CIT(A) CA TEGORICALLY GIVEN THE OBSERVATION THAT THE ASSESSEE PURCHASED TWO TRU CKS OUT OF 100% FINANCIAL ASSISTANCE OBTAINED FROM MEGMA LEAS ING AND ICICI BANK. THE INVESTMENTS AND LOAND OUTSTANDING ARE DU LY REFLECTED IN THE BALANCE SHEET FILED ALONGWITH THE RETURN. HOWE VER, THE REGISTRATION AND LICENCE FEES, ACCESSORIES PURCHASE D FOR THE NEW TRUCKS AND INVESTMENT OF RS. 54,757/- THEREOF HAS N OT BEEN CAPITALIZED AND REFLECTED IN THE BALANCE SHEET. TH ESE EXPENSES ARE ESSENTIAL FOR BRINING THE CAPITAL ASSETS I.E. THE TRUCKS TO OPERATION ( ITA NO. 190/BLPR/2011(A.Y. 2006-07) ) 3 FOR PLYING AND HIRING PURPOSES. THERE IS NO LOGIC IN THE CONTENTION OF LD. A.R. THE ASSESSEE WAS REQUIRED TO EXPLAIN THE SOURCE OF SUCH INVESTMENT OF RS. 54,757/-. THE ASSESSEE HAS NOT CONTROVERTED THE FINDINGS OF THE A.O IN THIS REGARD . IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES WE ARE NOT INCLIN ED TO INTERFERE IN THE ORDER OF LD. CIT(A) AND THE SAME IS CONFIRMED. 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 10 TH DAY OF FEB. 2012. SD/- SD/- (R.K.PANDA) (SHAI LENDRA KUMAR YADAV)) ACCOUNTANT MEMBER JUDICIA L MEMBER BILASPUR,DATED. 10 TH FEB. 2012 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CITY CONCERNED 4. THE CIT(A)- CONCERNED 5. THE D.R BILASPUR BENCH. (TRUE COPY) BY ORDER SR. PRIVATE SECRETARY, ITAT, BILASPUR BENC H BILASPUR VM. ( ITA NO. 190/BLPR/2011(A.Y. 2006-07) ) 4 DETAILS DATE INITIALS DESIGNATION 1 DRAFT DICTATED ON 9/2/2012 SR.PS/PS 2 DRAFT PLACED BEFORE AUTHOR 9/2/2012 SR.PS/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7. FILE SENT TO THE BENCH CLERK SR.PS/PS 8 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER