Babulal Krishna Gopal, Raniganj V. I.T.O.,Ward-3(1), Asansol

ITA 648/KOL/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2795 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 01-04-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SATYAJIT MONDAL CITSRDR
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH SMC KOLKATA BEFORE SHRI S.S, GODARA, JUDICIAL MEMBER ITA NO.648/KOL/2019 ASSESSMENT YEAR:2010-11 BABULAL KRISHNA GOPAL, 108, J.L. NEHRU ROAD, P.O. RANIGANJA, DIST. BURDWAN PIN713347 [ PAN NO.AACFB 7763 M ] / V/S . INCOME TAX OFFICER, WARD-3(1), APCAR GARDEN WEST, P.O. ASANSOL, DIST. PASCHIM BURDWAN-713304 /APPELLANT .. /RESPONDENT /BY APPELLANT NONE /BY RESPONDENT SHRI SATYAJIT MONDAL, ADDL. CIT-SR-DR /DATE OF HEARING 26-08-2019 /DATE OF PRONOUNCEMENT 30-08-2019 /O R D E R THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2010-11 ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS)-ASANSOLS ORDE R DATED 19.12.2018 PASSED IN CASE NO.83/CIT(A)/ASL/ITO/WD-3(1)/ASL/130-14, INVO LVING PROCEEDINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. CASE CALLED TWICE. NONE APPEARS AT ASSESSEES BEHES T. CASE FILE SUGGESTS THAT ASSESSEE HAS ALREADY PLACED ON RECORD HIS WRITTEN S UBMISSION. I THEREFORE PROCEED TO DECIDE THE INSTANT CASE EX PARE AGAINST THE ASSESSEE. HEARD LEARNED DEPARTMENTAL REPRESENTATIVE. CASE FILE / ASSESSEES WRITTEN SUBMISSION PERUSED. 2. THE ASSESSEES FIRST SUBSTANTIVE GRIEVANCE CHALL ENGES CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION DISALLOWING INTEREST AMOUN T OF 59,795/- U/S 40A(2)(B) OF THE ACT TO BE EXCESSIVE IN CASE OF SPECIFIED RELATED PA RTIES. LEARNED DEPARTMENTAL REPRESENTATIVE FAILS TO DISPUTE THAT NEITHER OF THE LOWER AUTHORITY HAS GIVEN ANY FINDING ITA NO.648/KOL/2019 A.Y. 2010-11 BABULAL KRISHNA GOPAL VS. ITO WD-3 (1), ASL. PAGE 2 ON THE MARKET RATE OF INTEREST IN THE RESPECTIVE OR DERS. I THEREFORE CONCLUDE THAT THE IMPUGNED DISALLOWANCE HAS NO LEGS TO STAND IN ABSEN CE OF ANY MARKET RATE OF INTEREST PAYMENT DETERMINED BY THE AUTHORITIES. THE ASSESSEE SUCCEEDS IN HIS FORMER SUBSTANTIVE GROUND. 3. NEXT COMES DEPRECIATION CLAIM DISALLOWANCE OF 2,905/- IN RELATION TO ASSESSEES FORMING PART OF BLOCK ASSET. BOTH THE LO WER AUTHORITIES HOLD THAT HE HAS USED THE VEHICLE IN QUESTION FOR HIS OWN BUSINESS THAN O N HIRE BASIS. LEARNED DEPARTMENTAL REPRESENTATIVE FAILS TO DISPUTE THAT THE ASSESSEE H AD EARLIER USED THE VERY VEHICLE ON HIRE BASIS AND THEREFORE, THE IMPUGNED DEPRECIATION @ 30% IS ALLOWABLE SINCE THE RELEVANT BLOCK OF ASSETS CONTINUES TO OPERATE. THIS SECOND SUBSTANTIVE GROUND ALSO ACCEPTED. 4. COMING TO DEPRECIATION DISALLOWANCE ON MOTOR CAR AND CORRESPONDING EXPENSES DISALLOWED @ 5% AMOUNTING TO 4,293/- AND 3,755/-; RESPECTIVELY ON ACCOUNT OF PERSONAL USE, I FIND MERIT IN LEARNED DEPARTMENTAL REPRESENTATIVES ARGUMENT THAT SUCH A PERSONAL USAGE ELEMENT CANNOT BE ALTOGETHER DENIE D IN THE GIVEN FACTS AND CIRCUMSTANCES. THESE TWO SUBSTANTIVE GROUNDS FAIL T HEREFORE. 5. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOV E TERMS. ORDER PRONOUNCED IN OPEN COURT ON 30/08/2019 SD/- (S.S. GODARA) J UDICIAL MEMBER KOLKATA, *DKP/SR.PS - /08/2019 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-BABULAL KRISHNA GOPAL, 108, J.L. NEHRU R OAD, P.O. RANIGANJ, DIST. BURDWAN PIN-713347 2. /RESPONDENT-ITO WD-3(1), APCAR GARDEN WEST, P.O. AS ANSOL, DIST. PASCHIM BURDWAN PIN-713304 3. ' % / CONCERNED CIT 4. % - / CIT (A) 5. & ))' , ' / DR, ITAT, KOLKATA 6. + / GUARD FILE. BY ORDER/ , ',