9911796707
TMI Blog2015 (4) TMI 1226X X X X Extracts X X X X X X X X Extracts X X X X ..... present appeal is as per ground of appeal No.1, which reads as under :- "1. The learned CIT(A) erred in rejecting appellant's claim for depreciation of Rs. 7,04,516/- on Motor Cars merely on the ground that they are registered in the name of director of the company." 3. The assessee is aggrieved by the orders of the authorities below in rejecting the claim of the assessee vis-à-vis depreciation on motor cars which were registered in the name of the Directors of the assessee company. 4. Briefly, the facts of the case are that the Assessing Officer noted that the assessee had claimed depreciation on vehicles, which though appeared in the Balance Sheet of the assessee company but were registered in the name of the Directors of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t cars were purchased in the name of Director to save on state levies and taxes. The Ld. Authorized Representative for the assessee further placed reliance on the ratio laid down by the Pune Bench of the Tribunal in ACIT vs. Talera Motors Pvt. Ltd. in ITA No.1208/PN/2009 relating to assessment year 2006-07 - order dated 11.05.2011 and also on Shri Panchganga Agro Impex P. Ltd. vs. ITO (supra). It was further pointed out by the Ld. Authorized Representative for the assessee that there was no merit in the order of the CIT(A) in placing reliance on the decision of the Mumbai Bench of the Tribunal in Edwise Consultants Pvt. Ltd. vs. Addl. CIT (supra). The Ld. Authorized Representative for the assessee pointed out that the Mumbai Bench of the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the registration cost. But merely because the vehicles were registered in the name of the Directors of the assessee company does not establish the case of the revenue for not allowing depreciation on such assets. The concept of financial ownership has been laid down by the Hon'ble Supreme Court in Mysore Minerals Ltd. vs. CIT, (1999) 239 775 (SC) and hence followed in series of decisions admittedly where the funds of the assessee company have been utilized for the purchase of vehicles, even though the vehicles are not registered in the name of the assessee company, does not establish the case of the Revenue especially where the domain/control of the said assets was with the company itself and the vehicles were being utilized for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly following the said decision of the Tribunal, we do not find any infirmity in the order of the CIT(A) in allowing the claim of the assessee. We uphold the same." 10. Similar proposition has been laid down by the Pune Bench of the Tribunal in ITO vs. Shree Panchganga Agro Impex Pvt. Ltd. (supra). The CIT(A) had denied the claim of depreciation on vehicles, in turn, reliance was placed on the ratio laid down by the Mumbai Bench of the Tribunal in Edwise Consultants Pvt. Ltd. vs. Addl.CIT (supra). We find no merit in the said reliance placed upon by the CIT(A) especially in circumstances where similar issue of allowance of depreciation on vehicles which were registered in the name of the Directors of the assessee company and claim of deprec ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
