The DCIT, Circle 1, JUNAGADH V. Shri Ramji Chunilal Pithar, Veraval

ITA 73/RJT/2011

• Counselvise Citation: 7324914 RSA 2011
• Duration Of Justice: 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2011
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 30-09-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 04-03-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MK SINGH
• Assessee Lawyers: DM RINDANI
• Keywords: Depreciation
• Section: 80HHC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE SHRI D.K. TYAGI (JUDICIAL MEMBER) AND SHRI A .L. GEHLOT (AM) I.T.A. NO.73/RJT/2011 (ASSESSMENT YEAR 2004-05) THE DCIT, CIR.1 VS SHRI RAMJI CHUNILAL PITHAR JUNAGADH PROP OF RAMESHWAR COLD STORAGE VERAVAL PAN : ACMPP9748C (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MK SINGH RESPONDENT BY: SHRI DM RINDANI DATE OF HEARING : 30-09-2011 DATE OF PRONOUNCEMENT : 30-09-2011 O R D E R PER D.K. TYAGI, JM THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF CIT(A)-XXI, AHMEDABAD DATED 24-12-2010 AND PERTAINS TO ASSESSME NT YEAR 2004-05. 2. THE EFFECTIVE GROUNDS RAISED IN THE APPEAL STATE AS FOLLOWS: 1. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.7,35,882 MADE BY HE AO, BY DISALLOWI NG HE ASSESSEES CLAIM U/S 80HHC WITHOUT CONSIDERING THE FACTS BROUGHT ON RECORD BY THE AO. 2. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN D ELETING THE ADDITION OF AMOUNTING TO RS.31,230/- MADE BY THE AO OUT OF CAR AND DEPRECIATION EXPENSES RS.510/- OUT OF MISCELLANEOUS EXPENSES, WITHOUT CONSIDERING THE FAC TS BROUGHT ON RECORD BY THE AO. ITA NO.73/RJT/2011 2 3. IN THE FIRST GROUND THE REVENUE IS DISPUTING THE COMPUTATION OF DEDUCTION U/S 80HHC VIS--VIS SALE PROCEEDS OF DEPB LICENCE. THIS ISSUE STANDS SETTLED IN FAVOUR OF THE REVENUE AND AGAINST THE ASSESSEE BY T HE JUDGMENT OF THE APEX COURT IN THE CASE OF LIBERTY INDIA LTD VS CIT 217 I TR 218 (SC). RESPECTFULLY FOLLOWING THE APEX COURT JUDGMENT, WE ALLOW THE GRO UND OF THE REVENUE. 4. WITH REGARD TO THE SECOND GROUND PERTAINING TO D ISALLOWANCE OF RS.31,230 OUT OF CAR EXPENSES AND CAR DEPRECIATION ON LUMP SU M BASIS ON THE GROUND OF PERSONAL USE AND DISALLOWANCE OF RS.47,510 OUT OF M ISCELLANEOUS EXPENSES, OFFICE EXPENSES FOR NON BUSINESS AND PERSONAL EXPEN SES WE FIND THAT THE CIT(A) FOUND THAT THE ASSESSING OFFICER HAS NOT POINT OUT ANY SPECIFIC ITEM OF EXPENSES UNDER THE ABOVE HEADS WHERE PERSONAL ELEMENT WAS IN VOLVED. THEREFORE, HE RESTRICTED THE DISALLOWANCE AT 50%. AS NO NEW FACT S HAVE BEEN BROUGHT TO OUR NOTICE, WE DO NOT SEE A REASON TO COME TO A DIFFERE NT CONCLUSION THAN THE ONE ARRIVED AT BY THE CIT(A). ACCORDINGLY THE GROUND I S REJECTED. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 30-09-2011. SD/- SD/- (A.L. GEHLOT) (D.K. TYAGI) ACCOUNTANT MEMBER JUDICIAL MEMBER RAJKOT, DT : 30 TH SEPTEMBER, 2011 PK/- ITA NO.73/RJT/2011 3 COPY TO: 1. ASSESSEE 2. REVENUE 3. THE CIT(A)-XXI, AHMEDABAD 4. THE CIT-III, RAJKOT 5. THE DR, I.T.A.T., RAJKOT (TRUE COPY) BY ORDER ASSTT.REGISTRAR, ITAT, RAJKOT