Jaykumar Mangilal Nagori, Pune V. Income-Tax Officer, Ward 2(3), , Pune

ITA 310/PUN/2021

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 2291 (ITAT-PUNE)
• Duration Of Justice: 11 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 25-07-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT आयकर अपील सं. / ITA No.310/PUN/2021 नधा रण वष / Assessment Year : 2017-18 Jaykumar Mangilal Nagori, 10/A, Indu Chambers, Mumbai Pune Road, Wakdewadi, Pune 411 003 PAN : AAIPN4131D Vs. ITO, Ward-2(3), Pune Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP : This appeal by the assessee is directed against the order passed by the National Faceless Appeal Centre (NFAC), Delhi on 09-06-2021 in relation to the assessment year 2017-18. 2. The only issue raised through various grounds is against the confirmation of disallowance at 30% of depreciation on motor car; conveyance expenses; and interest on car loan. 3. Briefly stated, the facts of the case are that the assessee is engaged in the business. He claimed depreciation on motor car amounting to Rs.8,65,503/-; interest on motor car loan at Assessee by Shri Pramod Shingte Revenue by Shri Piyush Kumar Singh Yadav Date of hearing 28-06-2022 Date of pronouncement 28-06-2022 ITA No.310/PUN/2021 Jaykumar Mangilal Nagori 2 Rs.3,33,915/- and conveyance expenses at Rs.37,050/-. The assessee was called upon to produce the car log book for demonstrating that the car was used only for business purposes. The assessee admitted that no such log book was maintained. Considering the fact that the tax audit report also depicted that personal element was involved in the vehicle expenses, the AO disallowed 30% of car depreciation, interest on such car loan and conveyance expenses. The ld. CIT(A) countenanced the disallowance. 4. I have considered the rival submissions and perused the relevant material on record. It is indisputable that the assessee could not lead any evidence to demonstrate that the user of the car was restricted only to business purposes and did not percolate for personal use. Even the auditor has also mentioned that the personal element in vehicle expenses could not be ignored. This shows that the car was partly used for business and partly for personal purpose. In such circumstances, disallowance of some percentage of the expenses in connection with the running of car is warranted. Keeping into consideration the peculiarity of the facts and circumstances of case under consideration, I am of the ITA No.310/PUN/2021 Jaykumar Mangilal Nagori 3 considered opinion that the ends of justice would meet adequately if the disallowance is restricted to 15% of such expenses and allowance instead of 30% as sustained in the first appeal. I order accordingly. 5. In the result, the appeal is partly allowed. Order pronounced in the Open Court on 28 th June, 2022. Sd/- (R.S.SYAL) उपा य / VICE PRESIDENT प ु णे Pune; दनांक Dated : 28 th June, 2022 Satish आदेश की ितिलिप अ ेिषत/Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2. 3. थ / The Respondent The NFAC, Delhi 4. 5. The CIT concerned DR, ITAT, ‘SMC’ Bench, Pune 6. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No.310/PUN/2021 Jaykumar Mangilal Nagori 4 Date 1. Draft dictated on 28-06-2022 Sr.PS 2. Draft placed before author 28-06-2022 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *