Classic Motors Pvt. Ltd., New Delhi V. ACIT, New Delhi

ITA 246/DEL/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 6690 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-11-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 15-11-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 13-01-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: P N MEHTA
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : B : NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO.246/DEL/2014 ASSESSMENT YEAR : 2009-10 CLASSIC MOTORS PVT. LTD., 101, COMPETENT HOUSE, F-14, CONNAUGHT PLACE, NEW DELHI. PAN: AABCC9312R VS. ACIT, CIRCLE-13(1), NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI P.N. MEHTA, CA DEPARTMENT BY : SHRI ANIL KUMAR SHARMA, SR. DR DATE OF HEARING : 15.11.2016 DATE OF PRONOUNCEMENT : 16.11.2016 ORDER PER R.S. SYAL, AM: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER PASSED BY THE CIT(A) ON 6.11.2013 IN RELATION TO THE ASSESSME NT YEAR 2009-10. ITA NO.246 /DEL/2014 2 2. THE FIRST ISSUE IN THIS APPEAL IS AGAINST THE CO NFIRMATION OF ADDITION ON ACCOUNT OF REPAIRS AND MAINTENANCE AMOUNTING T O RS.9,25,885/-. THE FACTS APROPOS THIS ISSUE ARE THAT THE ASSESSEE CLAIMED DEDUCTION, INTER ALIA, ON ACCOUNT OF REPAIRS AND MAINTENANCE AMOUNTING TO RS.1,99,985/- OF THE PREMISES A-39, MOHAN CO-OPERAT IVE, MATHURA ROAD, NEW DELHI AND RS.7,25,900/- OF THE PREMISES 5 -BHIKAJI CAMA PLACE, NEW DELHI. THE AO MADE DISALLOWANCE FOR THES E TWO AMOUNTS BY NOTICING THAT THE ASSESSEE WAS RECEIVING RENTAL INC OME FROM THEM AND THERE WAS NO SANCTION FOR GRANTING SEPARATE DEDUCTI ON FOR REPAIRS AND MAINTENANCE APART FROM STANDARD DEDUCTION OF 30%. THE LD. CIT(A) UPHELD THE ASSESSMENT ORDER ON THIS ISSUE. 3. HAVING CONSIDERED THE RIVAL SUBMISSIONS AND PERU SED THE RELEVANT MATERIAL ON RECORD, WE FIND THAT SIMILAR ISSUE CAME UP FOR CONSIDERATION BEFORE THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE IMMEDIATELY SUCCEEDING ASSESSMENT YEAR 2010-11. A COPY OF SUCH ORDER DATED 16.6.2016 IN ITA NO.5384/DEL/2014 HAS BEEN PLACED O N RECORD. RELEVANT DISCUSSION ON THIS ISSUE HAS BEEN MADE IN PARA 4 OF THE ORDER. ITA NO.246 /DEL/2014 3 IN THIS ORDER, IT HAS BEEN DISCUSSED QUA PREMISES AT 5-BHIKAJI CAMA PLACE THAT THE SAME WAS PARTLY LET OUT AND PARTLY U SED FOR THE ASSESSEES REGISTERED OFFICE. THE TRIBUNAL RESTORED THE MATTE R TO THE AO FOR CONSIDERING THE EXTENT OF LET OUT AND THEREAFTER, M AKING DISALLOWANCE ACCORDINGLY TO THAT EXTENT. RESPECTFULLY FOLLOWING THE PRECEDENT, WE SET ASIDE THE IMPUGNED ORDER ON THIS SCORE AND REMIT TH E QUESTION OF DISALLOWANCE OF RS.7,25,900/- IN RESPECT OF PREMIS ES 5-BHIKAJI CAMA PLACE, NEW DELHI TO THE AO FOR A FRESH CONSIDERATIO N. THE LD. AR DID NOT PRESS THE OTHER DISALLOWANCE OF RS.1,99,985/- TOWAR DS THE PREMISES A- 38, MOHAN CO-OPERATIVE, MATHURA ROAD, NEW DELHI. T O THAT EXTENT, THE ADDITION IS CONFIRMED AS NOT PRESSED. 4. THE ONLY OTHER ISSUE IN THIS APPEAL IS AGAINST T HE CONFIRMATION OF DISALLOWANCE OF DEPRECIATION OF RS.4,84,224/-. THI S ISSUE IS ALSO, ADMITTEDLY, SIMILAR TO THAT CONSIDERED AND DECIDED BY THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE A.Y. 2010-11. RELEVANT DISCUSSION HAS BEEN MADE IN PARAS 7 AND 8 OF THE ORDER. AFTER CONSIDER ING THE RELEVANT MATERIAL, THE TRIBUNAL DIRECTED TO DELETE THIS ADDI TION. AS, ADMITTEDLY, THE ITA NO.246 /DEL/2014 4 FACTS AND CIRCUMSTANCES FOR THE YEAR UNDER CONSIDER ATION ARE, MUTATIS MUTANDIS , SIMILAR TO THOSE FOR THE A.Y. 2010-11, RESPECTFU LLY FOLLOWING THE PRECEDENT, WE ORDER FOR THE DELETION OF ADDITIO N OF RS.4,84,224/- MADE ON ACCOUNT OF DEPRECIATION. 5. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 16.11.20 16. SD/- SD/- [KULDIP SINGH] [R.S. SYAL] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED, 16 TH NOVEMBER, 2016. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.