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2021 (11) TMI 744 - ITAT DELHIDisallowing of reimbursement of expenses and allowances under the provision of the Income Tax Act claimed against salary income - submission of the ld. Counsel that identical allowances were allowed by the AO in the order passed u/s 143(3) in the subsequent years - HELD THAT:- We deem it proper to restore this issue to the file of the AO with a direction to decide the issue afresh in the light of his decisions in the subsequent years in the order passed u/s 143(3) after obtaining necessary details from the assessee on this issue. The ground raised by the assessee is accordingly allowed for statistical purposes. Disallowance on account of depreciation and interest on vehicles - AO disallowed the claim of deduction u/s 57 on the ground that the assessee did not furnish the requisite details towards claim of depreciation and interest by filing the copies of invoice in support of purchase of vehicles, copies of rent agreement in respect of letting out of the vehicles and the loan certificate for claiming interest - CIT(A) upheld the action of the AO on the ground that both the vehicles were given on rent at very low rentals and the assessee, in the process incurred huge loss which has been utilized to set off the income from house property - HELD THAT:- The matter requires a re-visit to the file of the AO to find out as to the status in the preceding and succeeding years since the two vehicles were purchased on 27th December, 2010 and 29.09.2011 respectively. The AO may find out what is the rental income of Toyota Innova and Tata Canter in other cases to ascertain as to whether the assessee is deliberately entering into an agreement with a concern just to incur losses so as to set off the same from income from house property. The AO shall decide the issue as per fact and law and after giving due opportunity of being heard to the assessee. Ground No.2 raised by the assessee is accordingly allowed for statistical purposes. Reopening of assessment u/s 147 - CIT(A) giving a direction u/s 150(1) to the AO for taking action in the hands of the assessee as per law - HELD THAT:- The assessment year involved in the instant case is 2012-13. The property was purchased on 01.07.2010 for ₹ 22 lakhs. The assessee has obtained housing loan from the bank. The bank has valued the property at higher price for sanctioning the loan. Under these circumstances and in absence of any evidence with the AO or the CIT(A) that either the recipient has received any extra money or that the assessee has paid anything over and above what is stated in the sale deed, merely on the basis of valuation report by the bank for sanctioning of the loan cannot be a ground for giving a direction to the AO to reopen the assessment for another assessment year which was not the subject matter of appeal before the CIT(A). Even otherwise also, the CIT(A), in the instant case, passed the order on 5th February, 2019. On this date, the time limit for reopening of assessment u/s 149 for the assessment year 2011-12 was not available as the period of reopening the assessment for preceding six assessment years as on the date of passing of order by the CIT(A) was available only upto assessment year 2012-13. The various decisions relied on by the ld. Counsel supports the proposition that the order passed by the CIT(A) issuing direction u/s 150(1) is barred by limitation.
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