Southland Constructions (India) Private Limited, Coimbatore V. ITO Corporate Ward 3, Coimbatore

ITA 2585/CHNY/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3473 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 1 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-10-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 12-10-2021
• Assessment Year: 2014-2015
• Appeal Filed On: 06-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G JOHNSON LD
• Assessee Lawyers: T N SEETHARAMAN
• Keywords: Depreciation

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, VP AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./ ITA NO.2585/CHNY/2018 ( / ASSESSMENT YEAR: 2014-15) M/S. SOUTHLAND CONSTRUCTIONS (INDIA) PVT. LTD. C/O.SHRI T.N.SEETHARAMAN, ADVOCATE 384 / 196, LLOYDS ROAD,CHENNAI-600 086. / VS. I NCOME TAX OFFICER, WARD-3, COIMBATORE. ././PAN/GIR NO. AAICS-1899-Q (- /APPELLANT ) : (01- / RESPONDENT ) -/ APPELLANT BY : SHRI T.N.SEETHARAMAN, ADVOCATE 01-/ RESPONDENT BY : SHRI G.JOHNSON LD. ADDL. CIT / DATE OF HEARING : 12/10/2021 / DATE OF PRONOUNCEMENT : 12/10/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [AY] 2014-15 ARISES OUT OF THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-1, COIMBATORE [CIT(A)] DATED 27/07/2018 I N THE MATTER OF ASSESSMENT FRAMED BY LD. ASSESSING OFFICER [AO] U/S .143(3) OF THE ACT ON 26/12/2016. THE ONLY GRIEVANCE OF THE ASSESSEE T HAT IT HAS BEEN DENIED DEPRECIATION ON MOTOR CAR WHICH WAS REGISTER ED THE NAME OF ONE OF THE DIRECTORS. 2 2. HAVING HEARD RIVAL SUBMISSIONS AND AFTER GOING T HROUGH RELEVANT MATERIAL ON RECORD, OUR ADJUDICATION WOULD BE AS GI VEN IN SUCCEEDING PARAGRAPHS. 3. THE DISPUTE STEM FROM THE FACT THAT THE ASSESSEE PURCHASED A CAR IN DURING APRIL, 2013 IN THE NAME OF ONE OF THE DIR ECTOR. FOR THE SAID REASON, LD. AO DENIED DEPRECIATION CLAIM OF RS.6.02 LACS. DURING APPELLATE PROCEEDINGS, THE ASSESSEE SUBMITTED THAT THE VEHICLE WAS USED FOR THE BUSINESS PURPOSES. THE PAYMENTS WERE M ADE BY THE ASSESSEE TOWARDS PURCHASE OF CAR. THE INTEREST PAID ON LOAN TO PURCHASE THE CAR WAS CLAIMED AS WELL AS ALLOWED AND THEREFOR E, THE ASSESSEE WAS ELIGIBLE TO CLAIM THE DEPRECIATION IN TERMS OF DECI SION OF HONBLE SUPREME COURT IN MYSORE MINERALS LTD. V/S CIT (239 ITR 775). 4. WE FIND THAT IT IS UNDISPUTED FACT THAT THE ASSE SSEE MADE PAYMENT OF THE CAR AND IT WAS ALSO ALLOWED INTEREST PAID ON REPAYMENT OF LOAN. THERE ARE NO FINDINGS THAT THE CAR WAS BEING USED F OR THE PURPOSE OF BUSINESS. THEREFORE, MERELY BECAUSE IT WAS REGISTER ED IN THE NAME OF DIRECTOR WOULD NOT VITIATE DEPRECIATION CLAIM OF TH E ASSESSEE. THE ASSESSEE HAS PLACED ON RECORD AFFIDAVIT OF THE DIRE CTOR WHEREIN IT HAS BEEN CONFIRMED THAT THE VEHICLE WAS PURCHASED BY TH E ASSESSEE OUT OF ITS OWN FUNDS AND THE CAR WAS BEING USED FOR BUSINE SS PURPOSES ONLY. THEREFORE, ON THE FACTS OF THE CASE, THE DEPRECIATI ON CLAIM WOULD BE ALLOWABLE TO THE ASSESSEE AS HELD BY AHMEDABAD TRIB UNAL IN THE CASE OF SANATOSH STARCH LTD. V/S DCIT (ITA NO.1884/AHD/2010 DATED 19/11/2010) AS RELIED UPON BY LD. AR. THEREFORE, WE DIRECT LD. AO TO ALLOW THE DEPRECIATION. 3 5. THE APPEAL STAND ALLOWED. ORDER PRONOUNCED ON 12 TH OCTOBER, 2021. SD/- SD/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) / VICE PRESIDENT / ACCOUNTANT MEMBER < CHENNAI ; DATED : 12/10/2021 DS 57 / COPY OF THE ORDER FORWARDED TO : 1. - / THE APPELLANT 2. 01- / THE RESPONDENT 3. C ( ) / THE CIT(A) 4. C / CIT CONCERNED 5. 0 , , < / DR, ITAT, CHENNAI 6. H / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , < / ITAT, CHENNAI