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Income Tax Appellate Tribunal - Delhi

Classic Motors Pvt. Ltd., New Delhi vs Acit, New Delhi on 15 November, 2016

       IN THE INCOME TAX APPELLATE TRIBUNAL
            DELHI BENCHES : B : NEW DELHI

     BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER
                         AND
        SHRI KULDIP SINGH, JUDICIAL MEMBER

                        ITA No.246/Del/2014
                      Assessment Year : 2009-10

Classic Motors Pvt. Ltd.,          Vs.    ACIT,
101, Competent House,                     Circle-13(1),
F-14, Connaught Place,                    New Delhi.
New Delhi.

PAN: AABCC9312R

  (Appellant)                                 (Respondent)


            Assessee By       :   Shri P.N. Mehta, CA
            Department By     :   Shri Anil Kumar Sharma, Sr. DR
         Date of Hearing             :    15.11.2016
         Date of Pronouncement       :    16.11.2016

                               ORDER
PER R.S. SYAL, AM:

This appeal by the assessee is directed against the order passed by the CIT(A) on 6.11.2013 in relation to the Assessment Year 2009-10. ITA No.246/Del/2014

2. The first issue in this appeal is against the confirmation of addition on account of 'Repairs and maintenance' amounting to Rs.9,25,885/-. The facts apropos this issue are that the assessee claimed deduction, inter alia, on account of 'Repairs and maintenance' amounting to Rs.1,99,985/- of the Premises A-39, Mohan Co-operative, Mathura Road, New Delhi and Rs.7,25,900/- of the Premises 5-Bhikaji Cama Place, New Delhi. The AO made disallowance for these two amounts by noticing that the assessee was receiving rental income from them and there was no sanction for granting separate deduction for 'Repairs and maintenance' apart from standard deduction of 30%. The ld. CIT(A) upheld the assessment order on this issue.

3. Having considered the rival submissions and perused the relevant material on record, we find that similar issue came up for consideration before the Tribunal in the assessee's own case for the immediately succeeding assessment year 2010-11. A copy of such order dated 16.6.2016 in ITA No.5384/Del/2014 has been placed on record. Relevant discussion on this issue has been made in para 4 of the order. 2 ITA No.246/Del/2014 In this order, it has been discussed qua Premises at 5-Bhikaji Cama Place that the same was partly let out and partly used for the assessee's registered office. The Tribunal restored the matter to the AO for considering the extent of let out and thereafter, making disallowance accordingly to that extent. Respectfully following the precedent, we set aside the impugned order on this score and remit the question of disallowance of Rs.7,25,900/- in respect of Premises 5-Bhikaji Cama Place, New Delhi to the AO for a fresh consideration. The ld. AR did not press the other disallowance of Rs.1,99,985/- towards the Premises A- 38, Mohan Co-operative, Mathura Road, New Delhi. To that extent, the addition is confirmed as not pressed.

4. The only other issue in this appeal is against the confirmation of disallowance of depreciation of Rs.4,84,224/-. This issue is also, admittedly, similar to that considered and decided by the Tribunal in the assessee's own case for the A.Y. 2010-11. Relevant discussion has been made in paras 7 and 8 of the order. After considering the relevant material, the Tribunal directed to delete this addition. As, admittedly, the 3 ITA No.246/Del/2014 facts and circumstances for the year under consideration are, mutatis mutandis, similar to those for the A.Y. 2010-11, respectfully following the precedent, we order for the deletion of addition of Rs.4,84,224/- made on account of depreciation.

5. In the result, the appeal is partly allowed.

The order pronounced in the open court on 16.11.2016.

             Sd/-                                           Sd/-

      [KULDIP SINGH]                               [R.S. SYAL]
     JUDICIAL MEMBER                           ACCOUNTANT MEMBER
Dated, 16th November, 2016.
dk
Copy forwarded to:
     1. Appellant
     2. Respondent
     3. CIT
     4. CIT (A)
     5. DR, ITAT

                                                     AR, ITAT, NEW DELHI.




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