M/s Bharat Nagar Housing, Agra V. ITO Ward-2(1)(1), Agra

ITA 58/AGR/2023

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 6666 (ITAT-AGRA)
• Duration Of Justice: 1 year(s) 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-06-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 04-06-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 16-04-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: YADAV; ASSTT
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE: SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER AND SHRI P.C. YADAV, JUDICIAL MEMBER ITA No. 58/Agr/2023 Assessment Year: 2017-18 M/s. Bharat Nagar Housing, 2/27, Seth Gali, Agra. PAN:AAMFB9466D versus Income-tax Officer, Ward 2(1)(1), Agra. (Appellant) (Respondent) Assessee by: Sh. Chandrashekhar, Yadav, Asstt. (Adjournment application filed) Revenue by: Sh. Shailendra Srivastava, Sr. DR Date of hearing : 05.06.2024 Date of pronouncement: 05.06.2024 ORDER PER P.C. YADAV, JM: Present appeal of the assessee is arising from the order of ld. CIT(Appeals), NFAC, Delhi dated 21.02.2023 having DIN: ITBA/NFAC/S/250/2022-23/1049971275(1) for assessment year 2017-18. 2. Brief facts of the case are that the assessee is a firm engaged in the business of construction of residential houses, flats, office buildings etc. Assessee also deals in sale and purchase of land and ITA No. 58/Agr/2023 2 buildings in the city of Agra. For the impugned assessment year, assessee filed its return of income on 27.10.2017 declaring nil income. Case of the assessee was selected for scrutiny after issuance of statutory notices. It is the observation of the Assessing Officer that the assessee has produced books of account during the course of assessment proceedings and the same were examined on test check basis. During the course of assessment proceedings, the Assessing Officer observed that assessee has claimed certain expenses as mentioned hereunder : Car Insurance 1,13,852/- Interest on car loan 57,283/- Depreciation on cars 3,18,726 4,89,861/- The Assessing Officer further observed that the assessee has not debited any expenses in its books of account, vis a vis, running of cars and hence, the assessee is not entitled for the above mentioned expenses. During the course of assessment proceedings, assessee replied that the expenses in respect of use of cars were actually capitalized in the books of account with a view to claim the same on completion of project undertaken by the assessee. However, the ITA No. 58/Agr/2023 3 Assessing Officer did not find any force in the arguments of the assessee and disallowed total expenses of Rs.4,89,861/-. 3. Aggrieved with the order of Assessing Officer, assessee filed appeal before ld. CIT(Appeals) and reiterated the submissions made before the Assessing Officer. However, ld. CIT(Appeals) affirmed the view of the Assessing Officer, observing that the assessee failed to file any reply in respect of the issue of car expenses. During the appellate proceedings, ld. CIT(Appeals) has discussed another issue of an amount of Rs.43,326/-. This issue is not coming out from the assessment order. It is the contention of the assessee that this amount of Rs.43,326/- is required to be added in the income of the assessee, being difference of interest as shown in Form-26AS and as credited by ICICI Bank in the account of the assessee. Ld. CIT(Appeals) directed the Assessing Officer to verify the submission of assessee and do the needful. 4. Further aggrieved by the order of ld. CIT(Appeals), assessee filed appeal before the Tribunal, with respect to the issue of car expenses. In the appeal memo, the assessee has raised three grounds of appeal and contended that both the lower authorities have ITA No. 58/Agr/2023 4 erred in disallowing Rs.4,89,861/- in respect of car insurance, interest on car loan and depreciation. 5. Today before us, an adjournment application has been filed by the ld. AR of the assessee. The same stands rejected, as the matter is small and requires fresh adjudication at the end of Assessing Officer. 6. Ld. DR relied upon the orders of authorities below. However, upon observation of the Bench, fairly admitted that the Assessing Officer has committed errors while discussing the issue of car expenses, as mentioned above in this order. 7. After considering the arguments of ld. DR and the facts mentioned in the assessment order and grounds of appeal filed before us, we are of the firm view that the matter should go back to the Assessing Officer for examination afresh. Ld. Assessing Officer is directed to examine ,as to whether assessee has incurred motor car running expenses under the head ‘general expenses’ or not, as contended in grounds of appeal before us. Assessing Officer is further directed to examine the contention of the assessee that the expenses of cars were actually capitalized by the assessee, to be ITA No. 58/Agr/2023 5 claimed upon completion of project. Needless to say, the Assessing Officer would provide meaningful opportunity to the assessee before passing the order. 8. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 05.06.2024 on conclusion of hearing and reduced to writing and signed on 05.06.2024. Sd/- Sd/- (RAMIT KOCHAR) (P.C. YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 05.06.2024 *aks/-