ITO, Hyderabad v. M/s Tibrumal Jewellers, Hyderabad

ITA 1232/HYD/2010 | 2005-2006
Pronouncement Date: 29-10-2010 | Result: Dismissed

Appeal Details

RSA Number 123222514 RSA 2010
Assessee PAN AACFT9434H
Bench Hyderabad
Appeal Number ITA 1232/HYD/2010
Duration Of Justice 1 month(s) 8 day(s)
Appellant ITO, Hyderabad
Respondent M/s Tibrumal Jewellers, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 29-10-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted SMC
Tribunal Order Date 29-10-2010
Assessment Year 2005-2006
Appeal Filed On 20-09-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A-SMC' HYDERABAD BEFORE SHRI N.R.S. GANESAN JUDICIAL MEMBER AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER I.T.A. NO. 1232/HYD/2010 ASSESSMENT YEAR 2005-06 THE INCOME TAX OFFICER WARD-5(3) HYDERABAD VS. M/S. TIBRUMAL JEWELLERS HYDERABAD PAN:AACFT9434H APPELLANT RESPONDENT APPELLANT BY: SHRI K.V.N. CHARYA RESPONDENT BY: SHRI P. MURALI KRISHNA O R D E R PER NRS GANESAN JM: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-V HYDERABAD DATED 14.7.2010 AND PERTAINS TO ASSESSMENT YEAR 2005-06. 2. THE ONLY ISSUE ARISING FOR CONSIDERATION IS DISA LLOWANCE OF 1/5TH EXPENDITURE AND DEPRECIATION ON CAR IN A PROCEEDING U/S. 154 OF THE INCOME-TAX ACT 1961. SHRI K.V.N. CHARYA THE LEAR NED DR SUBMITTED THAT THE ASSESSING OFFICER DISALLOWED 1/5TH OF EXPE NDITURE DEPRECIATION INTEREST ON CAR LOAN INSURANCE ETC. SINCE THE CAR MIGHT HAVE BEEN USED FOR PERSONAL PURPOSES ALSO. SINCE T HE USE OF CAR FOR PERSONAL PURPOSES CANNOT BE RULED OUT ACCORDING TO THE LEARNED DR THE ASSESSING OFFICER HAS RIGHTLY INITIATED THE PRO CEEDINGS U/S. 154 OF THE INCOME-TAX ACT. 3. ON THE CONTRARY SHRI MURALI KRISHNA THE LEARNE D COUNSEL FOR THE ASSESSEE SUBMITTED THAT PROCEEDINGS U/S. 154 OF THE ACT CANNOT BE INITIATED TO DISALLOW AN EXPENDITURE AND DEPRECIATI ON SINCE THE SAME IS DEBATABLE IN NATURE. ACCORDING TO THE LEARNED COUN SEL FOR THE ASSESSEE WHETHER THE CAR WAS USED FOR PERSONAL PURPOSE OR NO T NEEDS A DETAILED ENQUIRY. THEREFORE IT CANNOT BE SAID THAT THERE W AS A PRIMA FACIE ERROR IN THE ORDER OF THE ASSESSING OFFICER. THEREFORE THE PROCEEDINGS INITIATED BY THE ASSESSING OFFICER U/S. 154 IS NOT JUSTIFIED AT ALL. I.T.A. NO. 1232/HYD/2010 M/S. TIBRUMAL JEWELLERS =============== 2 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE MATERIAL ON RECORD. AS RIGHTLY SUBMITT ED BY THE LEARNED COUNSEL FOR THE ASSESSEE WHETHER THE CAR IS USED FO R PERSONAL PURPOSES OR NOT NEEDS TO BE ENQUIRED. THE ASSESSIN G OFFICER CANNOT PRESUME THAT THE CAR MIGHT HAVE BEEN USED FOR PERSO NAL PURPOSES. THEREFORE IN OUR OPINION INITIATION OF PROCEEDING S U/S. 154 OF THE ACT FOR DISALLOWANCE OF THE EXPENDITURE ON CAR INTERES T ON CAR LOAN AND DEPRECIATION ON THE CAR MAY NOT BE PERMISSIBLE. IN OUR OPINION ONLY A PRIMA FACIE ERROR APPARENT ON THE FACE OF THE RECOR D HAS TO BE RECTIFIED U/S. 154 OF THE ACT. THE MATTER THAT REQUIRES DETA ILED ENQUIRY CANNOT BE CONSIDERED IN A PROCEEDINGS U/S. 154. THEREFORE W E DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A) AND ACCORDINGL Y THE SAME IS CONFIRMED. 5. IN THE RESULT THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 29TH OCTOBER 2010. SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER SD/- (N.R.S. GANESAN) JUDICIAL MEMBER HYDERABAD DATED 29TH OCTOBER 2010 TPRAO COPY FORWARDED TO: 1. THE INCOME TAX OFFICER WARD 5(3) 6TH FLOOR AA YAKAR BHAVAN BASHEERBAGH HYDERABAD. 2. M/S. TIBRUMAL JEWELLERS 5-9-29/5 BASHEERBAGH HYDERABAD. 3. THE CIT(A)-V HYDERABAD 4 THE CIT-IV HYDERABAD 5. THE DR ITAT HYDERABAD