MURARILAL MITTAL, MUMBAI V. DCIT CEN CIR 22, MUMBAI

ITA 4858/MUM/2014

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 9726 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 23-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEIL PHILIPDR
• Assessee Lawyers: MITESH N SHAH
• Keywords: Depreciation
• Section: 234B

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B, MUMBAI , .. , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER ITA NO.4858/MUM/2014 ASSESSMENT YEAR: 2011-12 SHRI MURARILAL MITTAL, 1601, MARATHON HEIGHTS P.B. MARG, JAIBHARAT OIL MILL, LOWER PAREL, MUMBAI-400013 / VS. DCIT, CENTRAL CIRCLE-22, AAYAKAR BHAVAN, M. K. ROAD, MUMBAI-400020 ( !'# /ASSESSEE) ( $ / REVENUE) P.A. NO. AHNPM8021D !'# / ASSESSEE BY SHRI MITESH N. SHAH $ / REVENUE BY SHRI NEIL PHILIP-DR % $& ' #( / DATE OF HEARING : 11/09/2018 ' #( / DATE OF ORDER: 18/09/2018 ITA NO.4858/MUM/2014 SHRI MURARILAL MITTAL, 2 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER DA TED 24/06/2014 OF THE LD. FIRST APPELLATE AUTHORITY, MU MBAI. THE FIRST GROUND RAISED BY THE ASSESSEE PERTAINS TO CONFIRMING THE ADDITION OF RS.13,12,580/- BY WAY OF DISALLOWIN G PART DEPRECIATION ON MOTOR CAR USED IN THE BUSINESS OF R UNNING ON HIRE. 2. DURING HEARING, THE LD. COUNSEL FOR THE ASSESSE E, SHRI MITESH N. SHAH, CLAIMED THAT THE ASSESSEE IS O WNER OF MOTOR CAR WHICH WERE GIVEN ON RENT, THEREFORE, AS P ER APPENDIX-1, THE DEPRECIATION MAY BE RESTRICTED TO @ 30% AGAINST CLAIMED @ 40% BY THE ASSESSEE. THE LD. DR, SHRI NEIL PHILIP, CONTENDED THAT FOR RENTAL BUSINESS IN THE F IELD OF MOTOR VEHICLES, THERE SHOULD BE LICENSE TO RUN THE BUSINE SS, THEREFORE, THE DEPRECIATION MAY NOT BE ALLOWED. IN REPLY, THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THE MOT OR CAR WAS GIVEN ON RENT THIS YEAR ONLY. ITA NO.4858/MUM/2014 SHRI MURARILAL MITTAL, 3 2.1. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE FACTS , IN BRIEF, ARE THAT THE ASSESSEE DECLARED INCOME OF RS.11,65,0 9,999/- IN HIS RETURN WHICH WAS PROCESSED UNDER SECTION 143 (1) OF THE ACT. NOTICE UNDER SECTION 143(2) AND 142(1), AL ONG WITH QUESTIONNAIRE WERE SERVED UPON THE ASSESSEE. FROM T HE DETAILS FILED BY THE ASSESSEE, IT WAS NOTICED THAT THE ASSESSEE CLAIMED DEPRECIATION OF RS.21,00,128/- ON MOTOR CAR AND MOTOR EXPENSES OF RS.78,953/- AND CAR RENTAL INCOME OF RS.9 LAKHS. THE ASSESSEE CLAIMED DEPRECIATION ON THE CAR AT THE RATE OF 40%. AS PER THE REVENUE, NO PLAUSIBLE EXPLANATION/DETAILS WERE FILED, THUS, THE DEPRECIAT ION WAS RIGHTLY RESTRICTED TO 15%. CONSIDERING THE TOTALIT Y OF FACTS, WE REMAND THIS ISSUE TO THE FILE OF THE LD. ASSESSING OFFICER TO EXAMINE THE FACTUAL MATRIX. THE ASSESSEE IS DIRECTE D TO PRODUCE THE EVIDENCE WHETHER THE ASSESSEE WAS HAVIN G A VALID TAXI LICENSE AND IF IT IS PRODUCED, THE MOTOR CAR MAY BE CONSIDERED AS TAXI AND THE DEPRECIATION MAY BE ALLO WED @ 30% AGAINST THE CLAIM OF 40% BY THE ASSESSEE. THIS GROUND OF THE ASSESSEE IS THUS ALLOWED FOR STATISTICAL PUR POSES. ITA NO.4858/MUM/2014 SHRI MURARILAL MITTAL, 4 3. SO FAR AS, LEVY OF INTEREST UNDER SECTION 234B AND 234 C OF THE ACT IS CONCERNED, IT IS CONSEQUENTIAL IN NATURE. 4. SO FAR AS PROCEEDING UNDER SECTION 271(1)(C) OF THE ACT IS CONCERNED, IT IS PREMATURE AND REQUIRES NO DELIBERATION. FINALLY, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN TH E PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 11/09/2018. SD/- SD/- ( B.R. BASKARAN ) (JOGINDER SINGH) '# / ACCOUNTANT MEMBER $# / JUDICIAL MEMBER % & MUMBAI; ) DATED : 18/09/2018 F{X~{T? P.S / *$ %$&'()(*& / COPY OF THE ORDER FORWARDED TO : 1. +,-. / THE APPELLANT 2. /0-. / THE RESPONDENT. 3. % 1# ( +, ) / THE CIT, MUMBAI. ITA NO.4858/MUM/2014 SHRI MURARILAL MITTAL, 5 4. % 1# / CIT(A)- , MUMBAI 5. 3$4 /# , +,( + 5 , % & / DR, ITAT, MUMBAI 6. 6! 7& / GUARD FILE. / BY ORDER, / (DY./ASSTT. REGISTRAR) , % & / ITAT, MUMBAI,