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2019 (11) TMI 1022 - ITAT DELHIDisallowance of depreciation on the car purchased by the assessee - Proprietorship firm - assessee purchased the car in his personal name and the payment of the purchase of the car was also made from the personal account - HELD THAT:- As assessee is an individual so naturally the assessee will purchase the car in his own name only. Therefore, we do not find any reason that assessee should not be allowed depreciation on the car, which is used for the purposes of his business. Merely because assessee has made payment for purchase of car from his personal account does not mean that it is not the business asset of the assessee. AO has not found any expenditure debited to the profit and loss account, but it cannot be said that depreciation on the asset is not allowable to the assessee. Assessee is owning an asset, which is used for the purposes of the business of the assessee. AO has presumed that assessee is not using motor car for his business purposes, which cannot be the basis of disallowance of depreciation. Accordingly we direct the learned assessing officer to delete the disallowance of depreciation. Addition being cash deposited in savings bank account - HELD THAT:- We have carefully considered the rival contention and found that assessee has sold his old car for INR 90,000 and has also shown two cash receipts of INR 45,000/– each against the sale of old car and therefore the addition made by the lower authorities deserves to be deleted. Merely because the assessee has not made any application under rule 46A for admission of the additional evidence the learned CIT(A) has not considered the above evidence and confirmed the disallowance. We do not find the confirmation of the above addition by the learned CIT(A) in accordance with the law. Therefore we direct the learned assessing officer to delete the above addition. Low household withdrawal of the assessee - HELD THAT:- We find that appellant’s family consists of 4 persons wherein the children’s are independent. Therefore the assessee has to bear the expenditure of self and his wife. For this purpose the assessee has shown the total withdrawal of INR 190,000 per annum. Before the learned assessing officer as well as before the learned CIT(A) assessee has stated that he is residing in a colony where the cost of livelihood is less. However, the lower authorities have confirmed the above addition. We do not find any reason to sustain the above addition because of the reason that no expenditure was found to have been incurred by the assessee outside the books of accounts. In view of this, we direct the learned assessing officer to delete the addition because of low also withdrawal.
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