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Gujarat High Court

Principal Commissioner Of Income Tax 4 vs Synpol Products Pvt Ltd on 11 June, 2018

Author: Akil Kureshi

Bench: Akil Kureshi, B.N. Karia

       C/TAXAP/531/2018                              ORDER



        `1IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                     R/TAX APPEAL NO. 531 of 2018

==========================================================
            PRINCIPAL COMMISSIONER OF INCOME TAX 4
                            Versus
                   SYNPOL PRODUCTS PVT LTD
==========================================================
Appearance:
MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1
MR.BANDISH SOPARKAR, ADVOCATE for the RESPONDENT(s) No. 1
==========================================================

 CORAM: HONOURABLE MR.JUSTICE AKIL KURESHI
        and
        HONOURABLE MR.JUSTICE B.N. KARIA

                           Date : 11/06/2018

                        ORAL ORDER

(PER : HONOURABLE MR.JUSTICE AKIL KURESHI)

1. Tax   Appeal   is  ADMITTED  for   consideration   of  following substantial question of law.

"[A] Whether   the   Appellate   Tribunal   has  substantially   erred   in   law   and   on   facts   in   deleting   the   disallowance   of   Rs.34,01,275/­   u/s 145A of the Income Tax Act, 1961?"

2. To be heard with Tax Appeal No.170 of 2018.

3. We   notice   that   the   Revenue   has   proposed  following additional questions which read as under:

"[B] Whether   the   Appellate   Tribunal   has  substantially   erred   in   law   and   on   facts   in   deleting   the   addition   of   Rs.16,50,326/­   on   account   of   depreciation   and   insurance   on  vehicle ?
[C] Whether   the   Appellate   Tribunal   has  Page 1 of 3 C/TAXAP/531/2018 ORDER substantially   erred   in   law   and   on   facts   in   deleting   the   disallowance   u/s   14   A   of   the   Income Tax Act?
[D] Whether   the   Appellate   Tribunal   has  substantially   erred   in   law   and   on   facts   in   deleting the disallowance of excess claim of   exemption   of   Rs.45,55,582/­   u/s   10B   of   the   Income Tax Act, 1961 ?"

4. In   Questions­B,   the   assessee   had   claimed  depreciation   on   the   vehicles   purchased   in   the   name  of   the   director.     The   Tribunal   allowed   the  depreciation   observing   that   the   control   of   the  vehicle   was   retained   by   the   company.   This   view   is  reiterated by this Court in case of  Commissioner of  Income   Tax   v.   Aravali   Finlease   Ltd.  reported   in  [2012] 341 ITR 282 Guj).  This question is therefore  not considered.

5. Questions­C and D have been considered by us in  a  separate  order   passed  by  us  in  Tax  Appeal  No.524  of 2018 and connected appeal.  Without repeating the  reasons, these questions are not considered.  

6. With   respect   to  Question­E,  we  notice  that   the  same   pertains   to   disallowance   of   54EC   claim.     The  issue   is   covered   by   the   judgment   of   this   Court   in  case   of  Commissioner   of   Income   Tax   (Appeals)  v.  Page 2 of 3

C/TAXAP/531/2018 ORDER Aditya Medisales Ltd. reported in [2014] 362 ITR 600   (Guj) and is therefore not considered.

7. Revenue   is   permitted   to   transpose   the   relevant  documents from Tax Appeal No.530 of 2018.  

(AKIL KURESHI, J) (B.N. KARIA, J) ANKIT SHAH Page 3 of 3