ALWAR GENERAL FINANCE CO(P)LTD, Alwar V. ITO, Alwar

ITA 523/JPR/2014

• Counselvise Citation: 52323114 RSA 2014
• Duration Of Justice: 1 year(s) 3 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 21-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJ MEHRA JCIT DHK
• Keywords: Depreciation

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JUDICIAL MEMBER VK;DJ VIHY LA-@ ITA NO. 523/JP/2014 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2005-06. ALWAR GENERAL FINANCE CO. P. LTD., AGARWAL BHAWAN, ROAD NO. 2, ALWAR. CUKE VS. THE INCOME TAX OFFICER, WARD 1(2), ALWAR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AABCA 4988 P VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI P.C. PARWAL, C.A. JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJ MEHRA, JCIT LQUOKBZ DH RKJH[K@ DATE OF HEARING : 15/10/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 13/11/2015 VKNS'K@ ORDER PER R.P. TOLANI, JM THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF LD. CIT (A), ALWAR DATED 22.05.2014. THE SOLE GROUND TAKEN IN THE APPEAL IS AS UNDER :- THAT THE LEARNED ASSESSING OFFICER HAS ERRED IN LA W AS WELL ON THE FACTS AND CIRCUMSTANCES OF THE CASE IN NOT ALLOWING THE D EPRECIATION ON TRUCK BLOCK OF RUPEES 14,26,190/- WHICH HAVE BEEN USED FO R THE PURPOSE OF THE BUSINESS AND ASSESSEE COMPANY IS THE OWNER OF THESE TRUCKS AND HAVE BEEN CLAIMED IN THE RETURN OF INCOME AND THE COMMIS SIONER OF INCOME TAX (APPEALS) ALWAR HAS ALSO ERRED IN SUSTAINING TH E SAME. 2. THE LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET C ONTENDS THAT THE ISSUE IN QUESTION IS COVERED BY ITAT JUDGMENT IN ASSESSEES OWN CASE IN ITA NO. 321/JP/2013 2 ITA NO. 523/JP/2014 A.Y. 2005-06. ALWAR GENERAL FINANCE CO. P. LTD. DATED 12.11.2014 HOLDING THAT THE TRUCKS IN QUESTIO N WERE USED FOR BUSINESS PURPOSES AND DEPRECIATION CLAIMED BY THE ASSESSEE WAS ALLOWA BLE BY FOLLOWING OBSERVATIONS :- 2.6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERU SED THE MATERIAL AVAILABLE ON RECORD. WE FIND MERIT IN THE ARGUMENTS OF THE LD. COUNSEL FOR THE ASSESSEE. THERE IS NO DIRECTION FROM THE ITAT F OR THE LD. CIT (A) TO CONSIDER THE ISSUE OF HEARD OF INCOME ON THIS ISSUE . WHAT WAS DIRECTED TO DECIDE THE ISSUE ABOUT THE DEPRECIATION QUA THE TRU CK PLYING. THE DIRECTION IN QUESTION WAS SIMPLE TO CONSIDER THE ISSUE OF DEP RECIATION WHICH WAS DENIED BY AO BY ASSESING THE INCOME U/S 44AE; LD. CI T (A) HELD THAT SEC. 44AE IS NOT APPLICABLE. THE ASSESSEE HAD TO PREFER A PPEAL BEFORE ITAT IN THE WAKE OF CONTRADICTORY FINDINGS OF THE LD. CIT ( A) AS MENTIONED IN PARA 8 OF THE ITAT ORDER. IN OUR CONSIDERED VIEW, THE LD . CIT (A) OUGHT NOT TO HAVE HELD THE LEASE RENTAL INCOME AS INCOME FROM OT HER SOURCES WITHOUT ANY ITAT DIRECTION OR JUSTIFICATION TO DO SO MORE S O WHEN THIS ISSUE IS NEITHER APPEALED BY ASSESSEE. BESIDES IT IS NOT DIS PUTED THAT LEASE RENTAL INCOME IS ALLOWED IN THE HANDS OF THE LESSEES. THE DEPRECIATION ON THE VERY SAME TRUCKS HAVE BEEN ALLOWED IN PRECEDING YEA RS ALSO AND BECOME PART OF THE BLOCK OF ASSETS. IN THIS YEAR THE ASSES SEES CLAIM TO HAVE ENTERED LEASE OF THESE TRUCKS TO OTHER PARTIES IS H ELD TO BE NOT PROPER AND WHICH IMPLIES THAT TRUCKS WERE UTILIZED BY THE ASSE SSEE FOR SELF BUSINESS. THUS LOOKING AT THE ENTIRETY OF THE FACTS AND CIRCU MSTANCES OF THE CASE AND IN VIEW OF THE FOREGOINGS, WE ARE OF THE VIEW T HAT DEPRECIATION AS CLAIMED BY THE ASSESSEE IS ALLOWABLE. 3. THE LD. D/R SUPPORTED THE ORDER OF THE A.O. 4. I HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE M ATERIAL ON RECORD. RESPECTFULLY FOLLOWING THE ITAT JUDGMENT IN THE ASSESSEES OWN C ASE REFERRED ABOVE, IT IS HELD THAT 3 ITA NO. 523/JP/2014 A.Y. 2005-06. ALWAR GENERAL FINANCE CO. P. LTD. THE TRUCKS IN QUESTION WERE UTILIZED BY THE ASSESSE E FOR BUSINESS PURPOSES AND ACCORDINGLY THE DEPRECIATION CLAIMED BY THE ASSESSE E IS ALLOWABLE. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 13/11/2015 . SD/- VKJ-IH-RKSYKUH (R.P.TOLANI) U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 13/11/ 2015 DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S. ALWAR GENERAL FINANCE CO. P. LT D., ALWAR. 2. IZR;FKHZ@ THE RESPONDENT- THE ITO WARD 1(2), ALWAR. 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO.523/JP/2014) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 4 ITA NO. 523/JP/2014 A.Y. 2005-06. ALWAR GENERAL FINANCE CO. P. LTD.