Chainrup Sampatram, Kolkata V. I.T.O Wd - 34(3),kolkata, Kolkata

ITA 510/KOL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 100172 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 9 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 12-03-2013
• Court: TRIBUNAL
• Department Lawyers: S C DAS
• Assessee Lawyers: N O N E
• Keywords: Depreciation
• Section: 143(3); 32

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: KOL KATA [BEFORE SHRI MAHAVIR SINGH, JM & SHRI M. BALAGANES H, AM] I.T.A NO. 510/KOL/2013 ASSESSMENT YEAR: 2008-09 CHAINRUP SAMPATRAM VS. INCOME-TAX OFFICER, WD-34 (3), KOLKATA (PAN: AACFC8307Q) ( APPELLANT ) ( RESPONDENT ) DATE OF HEARING: 30.11.2015 DATE OF PRONOUNCEMENT: 16.12.2015 FOR THE APPELLANT: N O N E FOR THE RESPONDENT: SHRI S. C. DAS, JCIT, SR. DR ORDER PER SHRI MAHAVIR SINGH, JM: THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A)-XX, KOLKATA IN APPEAL NO.177/CIT(A)-XX/WD-34(3)/2010-11/KOL DATED 28.02.2 013. ASSESSMENT WAS FRAMED BY ITO, WARD-34(3), KOLKATA U/S. 143(3) OF THE INCOME- TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR AY 2008-09 VIDE ITS ORDER DATED 3 1.12.2010. 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AGA INST THE ORDER OF CIT(A) CONFIRMING THE DISALLOWANCE OF DEPRECIATION AMOUNTING TO RS.94 ,081/-. FOR THIS, ASSESSEE HAS RAISED FOLLOWING GROUND NOS. 1 TO 3: 1THE ORDER OF THE LD. CIT(A)-XX, KOLKATA CONFIRMI NG THE ADDITION OF RS.94081 MADE BY THE INCOME TAX OFFICER IN COMPUTING THE TAXABLE INCOME OF THE APPELLANT IS CONTRARY TO LAW AND THE FACTS OF THE CASE. 2. ON FACTS BROUGHT ON RECORDS, THE LD. CIT(A) OUGH T TO HAVE HELD THAT THE DEPRECIATION IS RIGHTLY CLAIMED ON THE MOTOR CAR PURCHASED AND OWNE D BY THE APPELLANT AND THE SAME IS USED FOR THE PURPOSE OF BUSINESS OF THE APPELLANT. 3. THE ORDER OF THE LD. CIT(A) CONFIRMING THE DISAL LOWANCE OF DEPRECIATION OF RS.94081 IS BASED ON THE GROUND WHICH IS DIFFERENT FROM THE GRO UND TAKEN BY THE INCOME TAX OFFICER. THE ISSUE BEFORE THE LD. CIT(A) WAS THE QUESTION OF OWNERSHIP OF THE MOTOR CAR NOT THE USAGE THEREOF. 3. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE HAS P URCHASED A MOTOR CAR FOR A SUM OF RS.6,27,206/- AND CLAIMED DEPRECIATION THEREON AMOU NTING TO RS.94,081/- . THE AO REQUIRED THE ASSESSEE TO FILE COPY OF INVOICE OF PU RCHASE OF MOTOR CAR. THE ASSESSEE FILED COPY OF INVOICE OF PURCHASE OF CAR WHICH WAS IN THE NAME OF ONE OF THE PARTNERS AT THE GIVEN ADDRESS OF THE FIRM. THE ASSESSEE FILED DETA ILS OF PAYMENT WHICH WERE OUT OF 2 ITA NO.510/K/2013 CHAINRUP SAMPATRAM, AY 2008-09 ASSESSEE FIRMS FUND AND UTILIZED THIS FUND FOR PUR CHASE OF THE ASSET FOR THE PURPOSE OF THE BUSINESS OF THE FIRM. THE ASSESSEE HAS DISCLOSED T HIS ASSET IN THE FIRMS AUDITED BALANCE SHEET BUT ACCORDING TO AO, THIS ASSET BELONGED TO O NE OF THE PARTNERS SHRI BHARAT M. DUGGAR AND ACCORDINGLY, THE NECESSARY CONDITION OF OWNERSHIP OF CAR IS NOT PROVED IN TERM OF SECTION 32 OF THE ACT AND ACCORDINGLY, ASSESSEE IS NOT ENTITLED FOR DEPRECIATION. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE CIT(A), WHO ALSO CONFIRMED THE ACTION OF AO. AGGRIEVED, ASSESSEE IS IN SECOND APPEAL BEFORE US. 4. WE HAVE HEARD LD. SR. DR AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT ADMITTEDLY THE ASSESSEE PURCHASED THIS CAR FOR HIS BUSINESS PURPOSES BUT IN THE NAME OF ONE OF THE PARTNERS. THE FUNDS WERE UT ILIZED FROM THE FIRM FOR PURCHASE OF THIS CAR AND THE CAR IS PART OF ASSESSEES BALANCE SHEET I.E. OF MOVABLE ASSETS AND PART OF DEPRECIATION CHART WHETHER IT IS PURCHASED IN THE N AME OF PARTNERS BUT ON BEHALF OF FIRM AND ADDRESS OF THE FIRM IS GIVEN. IN VIEW OF THIS POSITION, THE ASSESSEE IS FULLY ENTITLED TO GET DEPRECIATION ON THE ABOVE CAR AND WE HOLD SO. THE APPEAL OF ASSESSEE IS ALLOWED. 5. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED . 6. ORDER IS PRONOUNCED IN THE OPEN COURT ON 16.12.2 015 SD/- SD/- (M. BALAGANESH) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 16TH DECEMBER, 2015 JD. SR. P.S COPY OF THE ORDER FORWARDED TO: 1 . APPELLANT SHRI CHAINRUP SAMPATRAM, 19, SYNAGOGUE STREET, KOLKATA-700 001. 2 RESPONDENT ITO, WARD-34(3), KOLKATA. 3 . THE CIT(A), KOLKATA 4. 5. CIT KOLKATA DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, ASSTT. REGISTRAR .