SMT. GUMAN KHANDELWAL, Jaipur V. ACIT, Jaipur

ITA 580/JPR/2011

• Counselvise Citation: 58023114 RSA 2011
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 10-06-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: K L MOOLCHANDAN I; R K KHUNTETA
• Keywords: Depreciation; Block assessment
• Section: 153A; 2

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH A JAIPUR (BEFORE SHRI R.K.GUPTA AND SHRI N.L.KALRA) ITA NO.580/ JP/2011 ASSESSMENT YEAR 2005-06 PAN: ADRPK 6455 F SMT GUMAN KHANDELWAL VS. THE ACIT A-2, RANA PRATAP NAGAR CENTRAL CIRCLE- 1 JHOTWARA, JAIPUR JAIPUR (APPELLANT ) (RESPONDENT) ASSESSEE BY : SHRI K.L. MOOLCHANDANI & SHRI R .K. KHUNTETA DEPARTMENT BY : SHRI SUNIL MATHUR DATE OF HEARING: 02-08-2011 DATE OF PRONOUNCEMENT: 26-08-2011 ORDER PER N.L. KALRA, AM:- THE ASSESSEE HAS FILED APPEAL AGAINST THE ORDER OF THE LD. CIT(A), CENTRAL JAIPUR DATED 15-04-2011 FOR THE ASSESSMENT YEAR 2005-06. 2.1 THE FIRST GROUND OF THE ASSESSEE IS THAT THE LD . CIT(A) HAS ERRED IN CONFIRMING THE ADDITION AT 20% FROM TAXI RUNNING EX PENSES AS AGAINST 33.33% MADE BY THE AO. 2 2.2 THE SECOND GROUND OF THE ASSESSEE IS THAT THE L D. CIT(A) HAS ERRED IN NOT ALLOWING DEPRECIATION IN EXCESS OF THE INCOME F ROM TAXI RUNNING BUSINESS. 2.3 WE HAVE HEARD BOTH THE PARTIES. DURING THE YEAR , THE ASSESSEE HAS PLIED TWO TAXIES FOR WHOLE OF THE YEAR, TWO TAXIES HAVE BEEN PLIED FOR 124 DAYS AND 136 DAYS RESPECTIVELY AND ONE TAXI HAS BEE N PLIED FOR 329 DAYS. THE PRESENT ASSESSMENT HAS BEEN MADE U/S 153A OF THE AC T. THE ASSESSMENT U/S 153A IS DIFFERENT FROM THE BLOCK ASSESSMENT U/S 158 BC OF THE ACT. THE BLOCK ASSESSMENT WAS BEING MADE FOR MAKING THE ASSE SSMENT OF UNDISCLOSED INCOME AS PER THE MATERIAL FOUND DURING THE COURSE OF SEARCH OR ANY MATERIAL WHICH IS CONNECTED WITH THE MATERIAL FOUND DURING T HE COURSE OF SEARCH AND NOTICED AFTER THE SEARCH. THE BLOCK ASSESSMENT WAS SEPARATE AND DISTINCT FROM THE REGULAR ASSESSMENT. HOWEVER, THE ASSESSMEN T U/S 153A IS TO BE MADE AND THE REGULAR ASSESSMENT IF ANY PENDING STAN DS ABATED. HENCE, WHEN THE INCOME IS BEING ASSESSED IN A REGULAR WAY THEN THE ASSESSEE IS ENTITLED FOR DEPRECIATION. HENCE, THE DECISION OF JODHPUR TRIBUN AL IN THE CASE OF SUNCITY ALLOYS (P) LTD. VS. ACIT, CENTRAL CIRCLE- 1 IN ITA NOS.586 TO 588/JU/2008 ON WHICH AO HAS PLACED RELIANCE IS NOT APPLICABLE I N THE INSTANT CASE. LOOKING TO THE NUMBER OF TAXIES PLIED FOR WHOLE OF THE YEAR AND PLIED FOR PART OF THE YEAR, WE FEEL THAT IT WILL BE FAIR AND REASONABLE TO ESTIMATE THE 3 INCOME FROM TAXIES AT 35,000/- AFTER ALLOWING DEPRE CIATION AS AGAINST RETURNED INCOME OF RS. 12,673/-. 3.1 THE THIRD GROUND OF THE ASSESSEE IS THAT THE LD . CIT(A) HAS ERRED IN CONFIRMING THE ADDITION AT 20% OF FURNITURE MAKING EXPENSES TO THE EXTENT OF RS. 14,802/- AS AGAINST RS. 24,670/- MADE BY THE AO. 3.2 WE HAVE HEARD BOTH THE PARTIES. THE EXPENSES AR E NOT FULLY VERIFIABLE. HOWEVER, THE DISALLOWANCE CONFIRMED BY THE LD. CIT( A) IS EXCESSIVE. WE FEEL THAT IT WILL BE FAIR AND REASONABLE TO RESTRI CT THE DISALLOWANCE TO RS. 3,000/- 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE PARTLY ALLOWED THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 26-08 -2011. SD/- SD/- (R.K. GUPTA) (N.L. KALRA) JUDICIAL MEMBER ACCOUNTANT MEMBER JAIPUR DATED; 26 /08/2011 *MISHRA COPY FORWARDED TO :- 1. SHRI GUMAN KHANDELWAL, JAIPUR 2. THE ACIT, CENTRAL CIRCLE- 1, JAIPUR 3. THE LD. CIT BY ORDER 4. THE LD. CIT(A) 5. THE LD.DR 6. THE GUARD FILE (ITA NO.580/JP /11) A.R, ITAT, JAIPUR 4 5 6