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2023 (12) TMI 1048 - HC - Income TaxValidity of revision u/s 263 - Allowability of Maintenance expenses and depreciation - Validity of order passed u/s 143(3) by AO confirmed by ITAT and setting aside revisional order of the Commissioner on the question of disallowability maintenance expenses and depreciation - HELD THAT:- Assessee is engaged in business of chartering flights and had derived chartering income which evidences the business nexus of use of aircrafts owned by the respondent/assessee. This being the finding of fact and not disputed by the revenue even before us, it can be safely concluded that the aircrafts were utilised for business purpose. Even if officers of the assessee i.e. directors have used the aircrafts for business meetings in different locations, it cannot be said to be a personal use. The assessee is a company and thus an artificial juristic person. Therefore, even if directors on some occasion have been allowed to use the aircrafts for their personal use, neither the expenses incurred in maintenance of the aircrafts nor the depreciation of the aircrafts can be disallowed, inasmuch as then, at the best, the value of use of the aircrafts on such occasion is perquisite in the hands of the user. On that account, neither depreciation nor maintenance can be disallowed, even partially. Tribunal has found that the aircrafts have been used for chartering business. Substantial receipts from chartering business has been shown by the assessee. Therefore, the view taken by the Tribunal in the impugned order, does not suffer from any error of law. Hence, the substantial question of law No.(i) is answered against the revenue and in favour of the assessee. Since the revenue/appellant themselves have conceded on the question of admissibility of the maintenance expenses and depreciation of the aircrafts, in full, in the matter of the present assessee in other assessment years, therefore, the revenue cannot be allowed to take a contrary stand in the present appeal. Therefore, for this reason also, the afore-quoted substantial question of law is answered in the manner as afore-stated i.e. against the revenue and in favour of the assessee. Deduction of lease rent for vehicle obtained on lease by the Assessee permitted - Relying upon the judgment of IM/S ICDS. LTD. VERSUS COMMISSIONER OF INCOME TAX. MYSORE & ANR. [2013 (1) TMI 344 - SUPREME COURT] and Rajshree Roadways v. Union of India & Ors. [2003 (3) TMI 50 - RAJASTHAN HIGH COURT] Tribunal held that the issue of lease rent is covered by the aforesaid judgment of the Hon’ble Supreme Court and hence the order passed by the Assessing Officer by taking one possible view, cannot be termed as ‘erroneous’ warranting initiation of revision proceedings under Section 263 of the Act, 1961. The Tribunal also found that in own case of the respondent/assessee for the assessment year 2011-12, the issue was accepted by the revenue, pursuant to the directions of the DRP. The impugned order of the Tribunal on the point of lease rent cannot be said to suffer from any illegality. Hence, the substantial question of law no. (ii), is answered against the revenue and in favour of the assessee.
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