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2017 (4) TMI 814 - ITAT MUMBAI

2017 (4) TMI 814 - ITAT MUMBAI - TMI - Claim 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 purpos .....

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t 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 exp .....

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ssing Officer. Assessing Officer will examine the veracity of these expenditures and allow accordingly as per law. - I.T.A. No.2277/Mum/2013 - Dated:- 12-4-2017 - SHRI SHAMIM YAHYA, AM AND SHRI RAVISH SOOD, JM For The Revenue : Shri Rajesh Kumar Yadav For The Assessee : Ms. Aarti Vissanji ORDER PER SHAMIM YAHYA, AM: This appeal filed by the revenue is directed against the order of the Commissioner of Income Tax (Appeals)-5, Mumbai [hereinafter referred to as the CIT(A) ] dated 31.12.2012 and per .....

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07,917/- from the computation of disallowance u/s.14A, holding that interest on car loan, packing credit interest and term loan interest cannot be attributed to investment in securities, ignoring that the said interest is related to assets and not to income and therefore cannot be excluded from the gross interest. 4. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in allowing the claim of prior period expenses disallowed in A.Y.2007-08, ignoring that the as .....

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same was registered in the name of the Director and not the company. Before the learned CIT(A) assessee submitted that purchase consideration has been paid by the assessee company and the motor car was accounted for in the books of the assessee company as part its fixed assets. That the motor car was used for the business purpose of the company. Considering the above learned CIT(A) held as under:- 3.3 In Mysore Minerals Ltd. vs. CIT (1999) 156 CTR (SC) 1 : (1999) 239 ITR 775 (SC) the Supreme Co .....

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ing to ₹ 2,49,149/- is deleted. 4. Against the above said order the revenue is in appeal before us. We have heard both the counsel and perused the records. Learned departmental representative has relied upon the decision of Income Tax Appellate Tribunal in case of Edwise Consultants Pvt. Ltd. in ITA No.391/Mum/2011 vide order dated 19.04.2013. On the other hand, learned counsel of the assessee relied upon the order of the same assessee for subsequent assessment year vide order dated 14.10. .....

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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. In the instant case there is no dispute with regard to the fact that the vehicles are used for the purpose of business of the assessee company. In the instant case there is no dispute with regard to the fact that the vehicles are used for the purpose of business of the assessee company .....

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ld be considered as owner for all practical purposes and hence it is entitled for depreciation. In view of the direction decision of Hon ble Gujarat High Court is available on this issue, we prefer to follow the same to that rendered by the Tribunal in the assessee s own case for A.Y.2007-08. Accordingly, we set aside the order of Ld. CIT(A) on this issue and direct the AO to allow depreciation on vehicles. 6. Since above decision of the Tribunal has been passed after taking into account Hon ble .....

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ning Nil exempt income. There are no direct / indirect expenses incurred by our assessee for earning Nil exempt income. As no deduction have been claimed, question of disallowance of such expenses u/s.14A does not arise . 8. Assessing Officer did not accept this proposition. He proceeded to make disallowance under Rule 8D by placing reliance upon the decision of the Income Tax Appellate Tribunal, Special Bench in the case of M/s. Daga Capital Management. Accordingly, he made a disallowance of &# .....

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Hence on the basis of Hon ble Delhi High Court decision in the case of Cheminvest Ltd. Vs. CIT (378 ITR 33), since no exempt income has been earned no disallowance u/s.14A of the Income Tax Act, 1961 ( in short the Act ) 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). Apropos Ground No. 3:- 10. Brief facts on this issue are as .....

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