M/s Youngman Woollen Mills (P) Ltd., Ludhiana V. JCIT, Ludhiana

ITA 434/CHANDI/2011

• Counselvise Citation: 43421514 RSA 2011
• Duration Of Justice: 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-01-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 17-01-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 25-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAISHREE SHARMADR
• Assessee Lawyers: SUDHIR SEHGAL
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B, CHANDIGARH BEFORE MS. SUSHMA CHOWLA, JUDICIAL MEMBER AND SHRI MEHAR SINGH, ACCOUNTANT MEMBER ITA NO.434/CHD/2011 (ASSESSMENT YEAR : 2005-06) M/S YOUNGMAN WOOLLEN MILLS(P)LTD. VS. THE J.C.I.T. , VILLAGE SEERA, RAHON ROAD, RANGE III, LUDHIANA. LUDHIANA. PAN: AAACY0912G (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SUDHIR SEHGAL RESPONDENT BY : SMT.JAISHREE SHARMA,DR DATE OF HEARING : 19.01.2012 DATE OF PRONOUNCEMENT : 27.01.2012 O R D E R PER SUSHMA CHOWLA, J.M, : THE APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORD ER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-II, LUDHIANA D ATED 14.03.2011 RELATING TO ASSESSMENT YEAR 2005-06 AGAINST THE ORD ER PASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS O F APPEAL: 1. THAT THE LD. CIT(A) HAS NOT CONSIDERED THE CORRECT FACTS OF THE CASE AND THE DISALLOWANCE OF RS.40000/- MADE UNDER THE WRONG NOTION OF LAW BY THE JCIT RANGE-III, LUDHIANA BE CONSIDERED. 2. THAT THE DISALLOWANCE OF RS.40000/- ON ACCOUNT OF CAR EXPENSES, CAR DEPRECIATION & TELEPHONE EXPENSES BE DELETED. 3. THE ONLY ISSUE RAISED IN THE PRESENT APPEAL IS I N RELATION OF CAR EXPENSES, CAR DEPRECIATION AND TELEPHONE EXPENSES. THE SAID DISALLOWANCE WAS MADE BY THE ASSESSING OFFICER ON A CCOUNT OF PERSONAL 2 USE OF THE AFORESAID EXPENSES, WHICH WAS UPHELD BY THE CIT (APPEALS). WE FIND THAT THE ASSESSEE BEFORE US IS A PRIVATE LI MITED CONCERN AND IN VIEW OF VARIOUS RULINGS ON THE ISSUE THAT IN THE CA SE OF COMPANY EITHER PRIVATE LIMITED OR PUBLIC LIMITED, THE SAME IS INDE PENDENT OF ITS DIRECTOR/S, THERE IS NO MERIT IN ANY DISALLOWANCE O F EXPENSES ON ACCOUNT OF PERSONAL USE BY THE DIRECTORS. ACCORDINGLY, WE FIND NO MERIT IN THE AFORESAID DISALLOWANCE OF RS.40,000/- OUT OF CAR EX PENSES, CAR DEPRECIATION AND TELEPHONE EXPENSES. 4. WE SET ASIDE THE ORDER OF CIT (APPEALS) IN THIS REGARD AND DIRECT THE ASSESSING OFFICER TO ALLOW THE CLAIM OF THE ASS ESSEE IN ENTIRETY. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE ALLOWE D. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH DAY OF JANUARY, 2012. SD/- SD/- (MEHAR SINGH) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 27 TH JANUARY, 2012 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. TRUE COPY BY ORDER ASSISTANT REGISTRAR, ITAT, CHANDIGARH