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2017 (4) TMI 814 - AT - Income TaxClaim of depreciation on motor car registered in the name of the Director and not the company - Held that:- As decided in Edwise Consultants Pvt. Ltd. [2015 (12) TMI 297 - ITAT MUMBAI] as relying on case of Aravali finlease Ltd (2011 (8) TMI 814 - Gujarat High Court ) and has taken the decision that the depreciation is allowable in the hands of the company, even if it is registered in the name of its director provided that the vehicle is used for the purpose of business of company and income derived there from was shown as income of the company. As the funds for purchase of vehicles have been provided by the assessee company and they have been shown as assets of the assessee company. Hence, the assessee company should be considered as owner for all practical purposes and hence it is entitled for depreciation - Decided in favour of assessee Disallowance u/s.14A - Held that:- We find that assessee has not earned any exempt income in the present assessment year. Hence on the basis of Hon’ble Delhi High Court decision in the case of Cheminvest Ltd. Vs. CIT (2015 (9) TMI 238 - DELHI HIGH COURT), since no exempt income has been earned no disallowance u/s.14A is liable to be made. However, in this case CIT(A) has affirmed the disallowance of ₹ 69,140/-. In this view of the matter revenue cannot have any grievance. Accordingly, we uphold the order of the learned CIT(A). - Decided against revenue Disallowance of prior period expenses - Held that:- We find that Assessing Officer has not accepted the assessee’s claim of prior period expenditure on the basis that assessee has not filed revised return. Nowhere in the assessment order, assessing officer has mentioned that otherwise he is satisfied with the expenditure claimed. In our considered opinion learned CIT(A) has erred in appreciating these aspect since Assessing Officer has not examined the veracity of these expenditures. We remand the issue to the file of the Assessing Officer. Assessing Officer will examine the veracity of these expenditures and allow accordingly as per law.
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