Income Tax Appellate Tribunal - Jodhpur
Shri Lalit Kumar Agarwal, ... vs Acit, Central Circle, Bikaner on 25 May, 2018
IN THE INCOME TAX APPELLATE TRIBUNAL
JODHPUR BENCH (SMC), JODHPUR
BEFORE SHRI R.C. SHARMA, ACCOUNTANT MEMBER
ITA No. 148/Jodh/2018
(ASSESSMENT YEAR-2013-14
Shri Lalit Kumar Agarwal, Vs A.C.I.T.,
1-G-9, Jawahar Nagar, Central Circle,
Sriganganagar. Bikaner.
(Appellant) (Respondent)
PAN: ABZPK 1700 D
Assessee By None
Revenue By Sh. Ashok Khanna JCIT
DR
Date of hearing 24/05/2018
Date of 25/05/2018
Pronouncement
ORDER
PER: R.C. SHARMA, AM This is an appeal filed by the assessee against the order of the CIT(A)-IV, Jaipur dated 02/02/2018 for the A.Y. 2013- 14 in the matter of order passed by the Assessing Officer u/s 143(3) of the Income-tax Act, 1961 [hereinafter referred to as 'the Act', for short].
2. No body appeared on behalf of the assessee. Moreover, nobody was there to prosecute the adjournment petition so filed. Accordingly, 2 ITA 148/Jodh/2018 Lalit Kr. Agarwal Vs ACIT the Bench decided to dispose off the appeal after considering the contention of the ld. Departmental Representative and the material placed on record.
3. The only grievance of the assessee relates to disallowance of interest expenses of Rs. 4,73,946/-.
4. I have gone through the orders of the authorities below and found that the assessee is engaged in the business of grain merchant and commission agent. During the course of scrutiny assessment, the Assessing Officer disallowed interest on the car loan and also part of the depreciation on the car so used for the purpose of business. It was the contention of the Assessing Officer that the personal use of car cannot be declined, accordingly, 1/5 t h claim of depreciation was declined.
5. By the impugned order, the ld CIT(A) has deleted the disallowance of depreciation after observing as under:
"6. With regard to this ground I find the appellant ha shown he purchase of car in the fixed assets and evidences of the same have been placed on record. Since car has been used for business purpose, 3 ITA 148/Jodh/2018 Lalit Kr. Agarwal Vs ACIT even admitted by A.O. in his order, ad hoc disallowance of Rs. 1,34,482/- is not tenable. On the facts and in the circumstances of the case, the same is directed to be deleted. Appellant's appeal in ground No. 2 is allowed.
However, the disallowance of interest on car loan was confirmed by the ld. CIT(A) against which the assessee is in further appeal before the ITAT. However, the department is not in appeal before the ITAT against deletion of disallowance of assessee's claim of depreciation on the very same car.
6. I find that the assessee has taken a loan from bank for purchase of car which has been used by the assessee in his business. Interest so paid to the bank was claimed in P&L account. This fact has neither declined by the Assessing Officer nor by the ld. CIT(A) even the part disallowance of depreciation on the car was deleted by the ld. CIT(A) after observing that since the car has been used for business purpose, no disallowance of depreciation is warranted. The ld. CIT(A) has categorically recorded a finding to the effect that the Assessing Officer himself has accepted use of car for the purpose of business. Under these facts and circumstances, there is no justification for decline of interest on the car loan, which was taken for purchase of car having been used for the purpose of business. 4
ITA 148/Jodh/2018 Lalit Kr. Agarwal Vs ACIT Accordingly, the Assessing Officer directed to delete the disallowance of interest expenses on car loan.
7. In the result, appeal of the assessee is allowed.
Order pronounced in the open court on 25/05/2018.
Sd/-
[R.C. SHARMA] Accountant Member Dated : 25/05/2018 *Ranjan Copy to :
1. The Appellant
2. The Respondent
3. The CIT
4. The CIT(A)
5. The DR
6. Guard File (ITA No. 148/Jodh/2018) Assistant Registrar Jodhpur Bench