IMAGE INFOTAINMENT LIMITED, ALWARPET, CHENNAI V. ACIT, Corporate Circle-2(2), Chennai

ITA 364/CHNY/2023

AI Insights

The case involves M/s. Image Infotainment Limited, which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal was concerning an intimation issued by the Centralized Processing Centre on 04-05-2020, which added Rs. 8.69 Lacs to the assessee's income as profit on the sale of two cars. These cars were part of a larger block of assets that were eligible for depreciation. The assessee argued that the profit from the sale of these cars should not be considered as income since the sale proceeds were adjusted against the block of assets and depreciation was claimed on the remaining value. The Tribunal agreed with the assessee's position and allowed the appeal, removing the addition from the taxable income.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134276 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 02-10-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 20-03-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R.SUBRAMANIAN LD
• Keywords: Depreciation
• Section: 143(1)

Judgement Text

आयकर अपीलीय अिधकरण “बी” ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय ी वी. द ु गा राव, ाियक सद! एवं माननीय ी मनोज कु मार अ&वाल ,लेखा सद! के सम)। BEFORE HON’BLE SHRI V. DURGA RAO, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.364/Chny/2023 (िनधा रण वष / As sessment Year: 2019-20) M/s. Image Infotainment Limited, No.61/32, T T K Road, Alwarpet, Chennai. बनाम / V s . ACIT Corporate Circle-2(2), Chennai. था यी ले खा सं. /जी आ इ आ र सं. /P A N/ G I R N o . AAACI- 6238 -B (अपीलाथ /Appellant) : (!"थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Shri R.Subramanian (C.A.)-Ld.AR !"थ कीओरसे/Respondent by : Shri D.Hema Bhupal (JCIT)- Ld.DR सुनवाईकीतारीख/Date of Hearing : 03-10-2023 घोषणाकीतारीख /Date of Pronouncement : 05-10-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2019-20 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 25-01-2023 in the matter of an intimation issued by Centralized Processing Centre u/s. 143(1) of the Act on 04-05-2020. Though the assessee has raised multiple grounds of appeal, however, the only ground urged before us is ground no.6 wherein the assessee is aggrieved by addition of an amount of Rs.8.69 Lacs to its income which 2 represent profit on sale of car. This addition has been made by CPC u/s 143(1). 2. The material facts are that the assessee sold two cars during the year and credited the profit arising there-from in the Profit & Loss Account. However, since this car was forming part of block of asset eligible for depreciation, the resultant sale consideration was reduced from the block of asset and the depreciation was claimed on the balance amount. On the basis of these facts, the assessee submitted that profit on sale of car could not be considered as its income. However, Ld. CIT(A) rejected the same against which the assessee is in further appeal before us. 3. Upon perusal of computation of income and depreciation chart as placed on record, it could be seen that the two cars forms part of larger block of asset which is eligible for depreciation. The sale consideration of Rs.17.77 Lacs has been reduced from the block and depreciation has been claimed only on the net value which is in consonance with the provisions of the act. In such a case, profit on sale of car could not be treated as assessee’s income. By deleting the impugned addition, we allow this ground of appeal. 4. The appeal stand partly allowed. Order pronounced on 05 th October, 2023. Sd/- Sd/- (V. DURGA RAO) (MANOJ KUMAR AGGARWAL) ाियक सद!/JUDICIAL MEMBER लेखासद! / ACCOUNTANT MEMBER चे5ई Chennai; िदनांक Dated : 05-10-2023 DS 3 आदेशकीTितिलिपअ&ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. !"थ /Respondent 3. आयकरआयु>/CIT 4. िवभागीय!ितिनिध/DR 5. गाडCफाईल/GF