V-TEX WVG & MFG MILLS LIMITED, MUMBAI V. ACIT 4(3), MUMBAI

ITA 6572/MUM/2013

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2522 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-12-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2010-2011
• Appeal Filed On: 08-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK BATRA
• Assessee Lawyers: M B SANGHVI
• Keywords: Depreciation; Opportunity of being heard

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI BEFORE SHRI N.K . BILLAIYA, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER / I .T.A. NO . 6572/MUM/2013 ( / ASSESSMENT YEAR : 2010 - 11 M/S. V - TEX WEAVING & MFG MILLS LTD., OFFICE NO. A 313, AHURA CENTRE, 82, MAHAKALI CAVES ROAD, ANDHERI (E), MUMBAI - 400 093 / VS. THE ACIT - 4(3), AAYAKAR BHAVAN, NEW MARINE LINES, MUMBAI - 400 020 ./ ./ PAN/GIR NO. : AABCV 7931K ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY: SHRI M.B. SANGHVI / RESPONDENT BY: SHRI VIVEK BATRA / DATE OF HEARING : 01 . 1 2 .2015 / DATE OF PRONOUNCEMENT : 01 .12 .2015 / O R D E R PER N.K. BILLAIYA, AM: THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST THE ORDER OF THE LD. CIT(A) - 8 , MUMBAI D ATED 27.8.2013 PERTAINING TO A SSESSMENT YEAR 20 1 0 - 11 . ITA. NO. 6572/M/2013 2 2. GROUND NO. 1 RELATES TO THE DISALLOWANCE OF DEPRECIATION CLAIMED ON MOTOR VEHICLE WHICH WAS NOT REGISTERED IN THE NAME OF THE COMPANY BUT WAS PURCHASED IN THE NAME OF THE DIRECTOR. 3. AN IDENTICAL ISSUE HAS BEE N CONSIDERED BY US IN ITA NO. 6571/M/2013 WHEREIN WE HAVE FOLLOWED THE DECISION OF THE CO - ORDINATE BENCH IN THE CASE OF M/S. PADMSHREE WEAVING & MFG. MILLS PVT. LTD. IN ITA NO. 6570/M/2013 WHEREIN THE TRIBUNAL HAS FOLLOWED THE DECISION OF THE HONBLE SU PREME COURT IN THE CASE OF ICDS LTD VS CIT 350 ITR 527. RESPECTFULLY FOLLOWING OUR OWN DECISION, WE DIRECT THE AO TO ALLOW THE CLAIM OF DEPRECIATION. GROUND NO. 1 IS ACCORDINGLY ALLOWED. 4. GROUND NO. 2 RELATES TO THE DISALLOWANCE OF INTEREST PAID TO N ON - BANKING FINANCIAL INSTITUTIONS U/S. 40(A)(IA) OF THE ACT. 4.1. WHILE SCRUTINIZING THE RETURN OF INCOME, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS DEBITED EXPENSES UNDER THE HEAD INTEREST PAID ON CAR LOANS. HOWEVER, THE AO FOUND THAT THE ASS ESSEE HAS NOT DEDUCTED TAX AT SOURCE. THE AO ACCORDINGLY DISALLOWED RS. 93,205/ - U/S. 40(A)(IA) OF THE ACT. 4.2. THE ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A) BUT WITHOUT ANY SUCCESS. 5. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE VEHEMENTLY SUBMITTED THAT PROVISO TO SEC. 40(A)(IA) HAS BEEN HELD TO BE DECLARATORY AND CURATIVE IN NATURE AND THEREFORE HAVE RETROSPECTIVE ITA. NO. 6572/M/2013 3 EFFECT BY THE TRIBUNAL DELHI BENCH IN THE CASE OF ITO VS DR. JAIDEEP KUMAR SHARMA 34 ITR 0565 WHEREIN THE TRIBUNAL HAS FOLLOWED THE DECISION OF THE HONBLE HIGH COURT OF DELHI IN THE CASE OF CIT VS ANSAL LAND MARK TOWNSHIP (P) LTD IN ITA NO. 160 & 161 OF 2015. THE LD. COUNSEL SUBMITTED THAT THUS IF THE PAYEES HAVE OFFERED THE INCOME IN THE RESPECTIVE RETURN AND HAVE PAID THE TAXE S, NO ADVERSE INFERENCE CAN BE DRAWN AGAINST THE PAYER I.E. THE ASSESSEE. 6. WE FIND FORCE IN THE CONTENTION OF THE LD. COUNSEL. WE HAVE GIVEN A THOUGHTFUL CONSIDERATION TO THE DECISION OF THE TRIBUNAL AND THE HONBLE HIGH COURT OF DELHI (SUPRA). RESP ECTFULLY FOLLOWING THE SAME, WE RESTORE THIS ISSUE TO THE FILE OF THE AO. THE ASSESSEE IS DIRECTED TO FURNISH NECESSARY DETAILS IN SUPPORT OF ITS CLAIM THAT THE INTEREST HAS BEEN SHOWN BY THE PAYEES IN THE RESPECTIVE RETURNS AND HAVE PAID TAXES THEREON. THE AO IS DIRECTED TO DECIDE THE ISSUE AFRESH IN THE LIGHT OF THE SECOND PROVISO TO SEC. 40(A)(IA) OF THE ACT AFTER GIVING FAIR OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON 1 ST DECEMBER , 2015 SD/ - SD/ - ( PAWAN SINGH ) (N.K. BILLAIYA) /JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED : 1 ST DECEMBER , 2015 . . ./ RJ , SR. PS ITA. NO. 6572/M/2013 4 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . / BY ORDER, //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI