M/s. Gajanand Sundarlal Pvt. Ltd., BIKANER V. ITO, BIKANER

ITA 431/JODH/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 91893 (ITAT-JODHPUR)
• Duration Of Justice: 11 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 13-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROOP CHAND
• Assessee Lawyers: N O N E WS
• Keywords: Depreciation
• Section: 54; 154; 15; 143(3)

Judgement Text

IN TH E INCOME TAX APPELLATE TRIBUNAL : JODHPRU BENCH : JODHPUR BEFORE SHRI R.C. SHARMA, HONBLE ACCOUNTANT MEMBER (S.M.C.) ITA NO. 431/JODH/2014 (ASSTT. YEAR 2008 - 09) M/S. GAJANAND SUNDARLAL PVT. LTD. V S INCOME TAX OFFICER, C/O. VIRENDRA JAIN (ADVOCA TE), WARD - 1(2), C/O. JAI KUMAR PUGALIA, BIKANER. SETHIA MAROTHI GUWAD, BIKANER. PAN NO. AAACG7586Q (APPELLANT ) (RESPONDENT ) ASSESSEE BY : N O N E (W/S). DEPARTMENT BY : SHRI ROOPCHAND, JCIT (DR). DAT E OF HEARING : 13/07/2015 DATE OF PRONOUNCEMENT : 17 /07/2015 O R D E R TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT (A) , BIKANER DATED 25 . 07 .20 1 4 FOR THE A.Y. 20 10 - 11 IN THE MATTER OF ORDER U/S 1 5 4 OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS THE ACT, FOR SHORT] . 2 2. THE ONLY GRIEVANCE OF THE ASSESSEE IN THIS CASE RELATES TO THE DISALLOWANCE OF LOSS IN SALE OF CAR AMOUNTING TO RS. 84,622/ - . 3. NONE APPEARED ON BEHALF OF THE ASSESSEE IN SPITE OF SERVICE OF N OTICE. I, THEREFORE, DISPOSE OF THE APPEAL AFTER HEARING THE LD. D.R. AND CONSIDERING THE WRITTEN SUBMISSIONS AS WELL AS MATERIAL PLACED ON RECORD . 4. FACTS IN BRIEF ARE THAT T HE ORIGINAL ASSESSMENT WAS FRAMED U/S 143(3) OF THE ACT AT RS. 5,05,650/ - AS A GAINST THE RETURNED INCOME OF RS. 1,65,640/ - . UNDER THE SCRUTINY ASSESSMENT THE AO MADE DISALLOWANCE ON ACCOUNT OF DEPRECI A T I ON OF RS. 91,295/ - AND INTEREST OF RS. 2,48,717/ - . AFTER COMPLETI NG ASSESSMENT U/S 143(3), THE AO INITIATED RECTIFICATION PROCEED INGS U/S 154 OF THE ACT AND MADE ADDITION OF RS. 3,19,843/ - ON ACCOUNT OF DIFFERENCE IN VALUE OF STOCK AND RS. 84,622/ - ON ACCOUNT OF LOSS ON SALE OF CAR. 5. BY THE IMPUGNED ORDER, THE LD. CIT(A) DELETED THE ADDITION MADE ON ACCOUNT OF DIFFERENCE IN STO CK. HOWEVER, THE ADDITION MADE ON ACCOUNT OF LOSS ON SALE OF CAR WAS UPHELD AGAINST WHICH THE ASSESSEE IS IN FURTHER APPEAL BEFORE ME. 3 6. I HAVE CONSIDERED THE SUBMISSIONS OF THE LD. DR AND HAVE CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW A S WELL AS THE WRITTEN SUBMISSIONS FILED BEFORE ME. I HAVE FOUND THAT THE ORIGINAL ASSESSMENT ORDER WAS FRAMED U/S 143(3) WHEREIN ADDITION WAS MADE ON ACCOUNT OF DISALLOWANCE OF DEPRECIATION AND INTEREST. THEREAFTER, ON THE PLEA THAT THERE WAS MISTAKE APP ARENT ON RECORD, THE AO INVOKED THE PROVISIONS OF SECTION 154 OF THE ACT AND MADE ADDITION BY DISALLOWING LOSS ON SALE OF CAR BY OBSERVING THAT THERE WAS ONLY ONE CAR WHICH WAS SOLD DURING THE YEAR AND OTHER HEAVY VEHICLES USED IN THE TRANSPORT OF GOODS IS DIFFERENT TO THE CAR NOT BELONGED TO THE SAME BLOCK. THERE IS NO DISPUTE TO THE WELL SETTLED LEGAL PROPOSITION THAT UNDER THE PROVI SI ONS OF SECTION 154 OF THE ACT ON L Y THE MISTAKE APPARENT FROM RECORD CAN BE RECTIFIED. A DEBATABLE ISSUE WHICH REQUIRES L ONG DRAWN PROCESS OF DELIBERATIONS , DISCUSSIONS AND REASONING CANNOT BE MADE SUBJECT MATTER OF RECTIFICATION U/S 154 OF THE ACT. IN THE INSTANT CASE, O RIGINAL ASSESSMENT WAS PASSED BY THE AO U/S 143(3) UNDER SCRUTINY ASSESSMENT AND THEREAFTER WHAT THE AO HAS TRIED TO DISALLOW WAS LOSS ON SALE OF CAR WHICH WAS NOT 4 APPARENT FROM RECORD. WHETHER THE CAR BELONGS TO SAME BLOCK OF ASSES OR DIFFERENT IS A DEBATABLE ISSUE WHICH REQUIRES LONG PROCESS OF REASONING. ACCORDINGLY WE DO NOT FIND ANY MERIT IN THE AOS ACTION FOR DISALLOWING LOSS ON SALE OF CAR ON THE PLEA THAT IT WAS A MISTAKE APPARENT ON RECORD. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRON OUNCED IN THE COURT ON 17 - 0 7 - 201 5 . SD/ - (R.C. SHARMA) ACCOUNTANT MEMBER DATED : 17 TH JULY, 2015 VL/ - COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) BY ORDER 5. THE DR ASSISTANT REGI STRAR ITAT, JODHPUR