Prime Developers, Hyd, Hyderabad V. ACIT, Circle-4(1), Hyderabad, Hyderabad

ITA 207/HYD/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 6262 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 23-02-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: U MINICHANDRAN
• Assessee Lawyers: V SIVA KUMAR
• Keywords: Depreciation

Judgement Text

ITA NO 207 OF 2016 PRIME DEVELOPERS HYDERABAD PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SMT. P.MADHAVI DEVI, JUDICIAL MEMBER & SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO.207/HYD/2016 (ASSESSMENT YEAR: 2007-08) PRIME DEVELOPERS HYDERABAD PAN: AAGFP 7102 C VS. ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE 4(1) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI V. SIVA KUMAR FOR REVENUE : SMT. U. MINICHANDRAN, DR DATE OF HEA R ING : 17.08.2016 DATE OF PRONOUNCEMENT : 24 .08.2016 O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2007-08 AGAIN ST THE ORDER OF THE CIT (A) IN CONFIRMING THE ADDITION OF RS.84,738 MADE BY THE AO TOWARDS TAXABLE FRINGE BENEFIT. 2. AT THE OUTSET IT IS NOTICED THAT THE APPEAL IS B ARRED BY A PERIOD OF 11 DAYS. IN THE AFFIDAVIT ACCOMPANYING TH E PETITION FOR CONDONATION OF DELAY, IT IS STATED THAT THE DELAY I S DUE TO NON- AVAILABILITY OF THE AUTHORISED SIGNATORY AT HYDERAB AD AFTER THE APPEAL PAPERS WERE READY. IN VIEW OF THE REASONS GI VEN IN THE APPLICATION FOR CONDONATION OF DELAY, WE CONDONE TH E DELAY AND PROCEED TO DISPOSE OF THE APPEAL. ITA NO 207 OF 2016 PRIME DEVELOPERS HYDERABAD PAGE 2 OF 3 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, A PARTNERSHIP FIRM, DID NOT FILE ANY RETURN U/S 115WH OF THE ACT. AS THE AO HAD SUFFICIENT INFORMATION ON RECORD THAT SOME AMOU NT OF FRINGE BENEFITS HAD ESCAPED ASSESSMENT, A NOTICE U/S 115WH WAS ISSUED TO THE ASSESSEE ON 23.01.2013. FROM THE P&L A/C OF THE ASSESSEE COMPANY, AO OBSERVED THAT THE ASSESSEE HAD CLAIMED DEPRECIATION ON CARS. HE OBSERVED THAT AS PER THE F RINGE BENEFIT PROVISION, 20% OF THE DEPRECIATION ON CARS IS TO BE BROUGHT TO FRINGE BENEFIT TAX WITHIN THE MEANING OF EXPENSES INCURRED ON REPAIRS, RUNNING AND MAINTENANCE OF MOTOR CARS INCL UDING FUEL AND DEPRECIATION. SINCE THE ASSESSEE FAILED TO COM PLY WITH THE SHOW CAUSE NOTICE U/S 115WH AND ALSO U/S 143(2) OF THE ACT, REGARDING THE DISALLOWANCE OF THE ABOVE EXPENDITURE , AO COMPLETED THE PROCEEDINGS EX-PARTE AND RAISED A FRI NGE BENEFIT TAX DEMAND OF RS.66,420. AGGRIEVED, THE ASSESSEE PR EFERRED AN APPEAL BEFORE THE CIT (A), WHO CONFIRMED THE DISALL OWANCE AFTER TAKING NOTE OF THE FACT THAT THE ASSESSEE DID NOT P RESS THE ISSUE DURING THE APPELLATE PROCEEDINGS. AGGRIEVED BY THE SAME, THE ASSESSEE IS IN APPEAL BEFORE US. 4. AT THE TIME OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE FAIRLY SUBMITTED THAT ON VERIFICATION OF THE ACCOUN TS, IT WAS FOUND THAT THE CARS WERE USED BY THE EMPLOYEES OF THE ASS ESSEE FIRM AND THEREFORE, EXPENDITURE ON CARS WAS EXIGIBLE TO FRINGE BENEFIT TAX AS PER THE PROVISION OF THE ACT AND THEREFORE, THE ASSESSEE HAS NO SERIOUS GRIEVANCE AGAINST THE ORDER OF THE C IT (A).TAKING THE SAME INTO CONSIDERATION, THE APPEAL OF THE ASSE SSEE IS DISMISSED. ITA NO 207 OF 2016 PRIME DEVELOPERS HYDERABAD PAGE 3 OF 3 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 24 TH AUGUST, 2016. S D/ - S D/ - (S.RIFAUR RAHMAN) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 24 TH AUGUST, 2016. VNODAN/SPS COPY TO: 1. M/S. PRIME DEVELOPERS, H.NO.1-2-365/4&5, DOMALGUDA, HYDERABAD 2. ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE 4(1) AAYA KAR BHAVAN, BASHEERBAGH, HYDERABAD 3. CIT(A) 1, HYDERABAD 4. PR. CIT -1 HYDERABAD 5. THE DR, ITAT, HYDERABAD 6. GUARD FILE BY ORDER