Appeal details
Counselvise Citation
[2015] 120 COUNSELVISE.COM (IT) 9091 (ITAT-LUCKNOW)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
2 year(s) 8 month(s) 14 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
27-02-2015
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
A
Next Hearing Date
24-02-2015
Assessment Year
2006-2007
Appeal Filed On
13-06-2012
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI. A. K. GARODIA, ACCOUNTANT MEMBER ITA NO.328/LKW/2012 ASSESSMENT YEAR:2006-07 M/S AZAD TOBACCO FACTORY PVT. LTD. MADAN MAHAL ROAD LUCKNOW V. DCIT RANGE 1 LUCKNOW TAN/PAN:AACCA0721H (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI. B. P. YADAV, ADVOCATE RESPONDENT BY: SHRI. PUNIT KUMAR, D.R. DATE OF HEARING: 25 02 2015 DATE OF PRONOUNCEMENT: 27 02 2015 O R D E R PER SUNIL KUMAR YADAV: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) ON A SOLITARY GROUND THAT THE LD. CIT(A) HAS ERRED ON FACTS AND IN LAW IN CONFIRMING THE ADDITION OF RS.1,04,452/- IN THE HANDS OF THE ASSESSEE BY WAY OF DISALLOWING THE DEPRECIATION OF CAR AND INTEREST ON CAR LOAN. 2. THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE HAS PURCHASED A CAR IN THE NAME OF ITS DIRECTOR, SHRI. RIAZ AHMED. THE CAR WAS ALSO REGISTERED IN THE NAME OF THE DIRECTOR AND LOAN WAS ALSO FINANCED IN THE NAME OF THE DIRECTOR, BUT THE INSTALMENTS OF LOAN WERE PAID BY THE ASSESSEE. IT WAS ALSO CONTENDED THAT THE MARGIN MONEY FOR PURCHASING THE CAR WAS ALSO PAID BY THE ASSESSEE. TO ESTABLISH THESE FACTS, THE LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE STATEMENT OF ACCOUNT OF THE ASSESSEE, IN WHICH ADVANCE MONEY OF RS.50,000/- WAS PAID BY THE :- 2 -: ASSESSEE FOR BOOKING THE CAR AND LATER ON 6.2.2006, THE AMOUNT OF RS.2,43,767/- WAS ALSO PAID TO THE CAR DEALER. THE LOAN WAS OBTAINED BY THE DIRECTOR FROM ICICI BANK, BUT INSTALMENTS OF RS.15,096/- EACH WAS PAID BY THE ASSESSEE AND THIS PAYMENT IS REFLECTED IN THE STATEMENT OF ACCOUNT OF THE ASSESSEE. COPY OF THE STATEMENT OF ACCOUNT IS AVAILABLE AT PAGES 4 TO 13 OF THE COMPILATION OF THE ASSESSEE. IN SUPPORT OF HIS CONTENTION THAT THOUGH VEHICLE IS PURCHASED IN THE NAME OF THE DIRECTOR, THE ASSESSEE IS ENTITLED FOR DEPRECIATION, AS THE INVESTMENT IN VEHICLE WAS MADE BY THE ASSESSEE, THE LD. COUNSEL FOR THE ASSESSEE HAS PLACED RELIANCE UPON THE FOLLOWING JUDGMENTS:- 1. SMT. SURINDER KAUR VS. INCOME TAX OFFICER 118 TTJ 710 2. INCOME TAX OFFICER VS. SANSRITIK VIKAS AND SAMAJ KALYAN SANSTHAN, 11 MTC 216 (TRIB). 3. T VS. MAHADEO R. MAHADIK, 61 TTJ 759. 3. THE LD. D.R., ON THE OTHER HAND, HAS PLACED RELIANCE UPON THE ORDER OF THE LD. CIT(A). 4. HAVING CAREFULLY EXAMINED THE ORDERS OF THE LOWER AUTHORITIES AND THE DOCUMENTS PLACED ON RECORD AND ALSO THE CASE LAWS REFERRED TO BY THE ASSESSEE, WE FIND THAT UNDISPUTEDLY IT IS EVIDENT FROM THE RECORD THAT THE VEHICLE WAS PURCHASED BY THE ASSESSEE FROM ITS OWN FUNDS IN THE NAME OF ITS DIRECTOR. SINCE THE INVESTMENT WAS MADE BY THE ASSESSEE IN THE CAR, THE ASSESSEE IS ENTITLED FOR DEPRECIATION ON CAR, AS IT WAS USED FOR BUSINESS PURPOSES, THOUGH IT WAS PURCHASED IN THE NAME OF THE DIRECTOR THE REVENUE HAS NOT BROUGHT ANYTHING ON RECORD TO SHOW THAT THE VEHICLE WAS USED OTHER THAN BUSINESS PURPOSES. WE HAVE ALSO CAREFULLY PERUSED THE JUDGMENTS REFERRED TO BY THE ASSESSEE AND WE FIND FORCE IN THE CONTENTIONS OF THE ASSESSEE THAT WHERE THE VEHICLE IS PURCHASED BY THE COMPANY IN THE NAME OF ITS DIRECTOR, THE COMPANY IS ENTITLED FOR DEPRECIATION THEREON. WE :- 3 -: ARE, THEREFORE, OF THE VIEW THAT IN THE INSTANT CASE, THE INVESTMENT IN CAR WAS MADE BY THE ASSESSEE THOUGH IT WAS PURCHASED IN THE NAME OF THE DIRECTOR AND, THEREFORE, THE ASSESSEE IS ENTITLED FOR DEPRECIATION. WE ACCORDINGLY SET ASIDE THE ORDER OF THE LD. CIT(A) AND DIRECT THE ASSESSING OFFICER TO ALLOW DEPRECIATION. 5. IN THE RESULT, APPEAL OF THE ASSESSEE STANDS ALLOWED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTIONED PAGE. SD/- SD/- [A. K. GARODIA] [SUNIL KUMAR YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 27 TH FEBRUARY, 2015 JJ:2502 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR ASSISTANT REGISTRAR
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