Karnataka High Court
Prakash Leasing Ltd vs The Deputy Commissioner Of Income Tax on 27 February, 2012
Bench: N.Kumar, Ravi Malimath
EN "E'§~§E HEQH saw?" Cr?' %<;%R?'~§§?;3=.E<A A"? amggmag ggjw WES mg 22% g:§A":' Q?' FEBRQARY PRESENT L M ' THE HQEWBLE MR. 3uST::§ N.;<u§::--;é.¥§j:'~. L. AND .' 1' M K THE Hgzxraaa ;v1R.3L;32':._;E R A2{1:%";«:j¢aL:;§i';sijs.' HA,No,255§fj'_Lj§.V§j";2§eS"'~ ' V% BETWEEN:
?rakash Leasir;g[L*%;<:§_.,, H . .4 1 Reg. by its §'v"E€éna§éjT§L:'zg . *'-rje:.i':ér, "
Sri Bharath;Néztafrg-,';--_V ' »
NOJ(49), I !.\{:ai§n;_ " V
'»fa3a::t§2--aw§~§.;?,;g]*;arg '*i::. "
Bangaégre. _ " H.;i'xPPELLAi\é'?
{By 3%? ;5éj.§i**2a;;':i<:a.:f &f§r% i;a'é.:a; fidvecatefi) Affiifigé "
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{$33 SE i§'¥"é:_,"f§%1%::::":*sai$$%3§ zkéaascaie} This ETA féiefi améer satiayé 2§§~fix 9% §.T,$£i:; 39%:
arising Gut 0% Qréer fiaiecé G?a8E.2§QE §§SS§EEiC§._ 5:': E'§"A,§'\ie,6:§/EJQ9 fa; the Efassesamgni yea? :;9;9».§4'§_V?; grayiag is §€2:'m:;%a%e Ehse suéstsntéai azgegiéms§§f§aé;:%: staieé therem; aélew the apgeai and get agsde _:§f§'é"e.:f€§gr' §f'= _ the Trébufifii bearing ITA.Ns.516/3,599 §aEe§".._G?¢§1;§;{}Q§ T < an the \;aE%d§i:3s of Agsessment Year 199é~=§?g,~~~.-- This ETA ieming on for heariigjg ::h.§é.fiéé§(;:
defivereé ihe foéiewings «. " jubér-«@532 Vie agsesséa in %E3:e~bu€sEne3§ af
fimance and Eéasirég. ??%:é3}"_T_%*sa'%.%e sf émeme fer the assess:?:e§§t«é{€$.r aém§1:t%n§ the tcstai Eggs 3:' Eubsequentiy, they fééeé admiitmg a Esta: Ees$ ef Q3;:L{};:?§;§3§;'7;;-._'.'".f?fi§rEf_9§;iE}Tf'E was grecesgeé urséer Ssétiea 3%:-._2{}.,S1E..;-"§9§? gm it was acceiaiadg The ~'"~.._a§S§§?;:s€;$: €:__§§"?iQ§'§':";;*...fL;€"§2ES§i€fi afiaihes revigeé reium ea ':%%§,,"iV€T§.:v§%+?"a:§m%tii§g mi Enigma afier Qéaémiag §€fi:,:<:':%@§": :é':::§%é%' §£2;<:§i%g:§éT:'$3E'*%. E: the meme cf izémma ii %§ staiéfi 'sixat i.i?éi}_ass§§s%e figs Engfixserteatiy' aéaémeé éegreiéaiim A f"a;"r:{2'£~'%T:'*:;b an 2% sezziars {:$g:%::§ §;$§'§;§,§@;8?g3§€3;® mshégh wag ' gigrshassa 3:? 28a83,E9§§§ Ea '§?':§S :"e%::,:m, the §§§I"€€§8"Z§G§'% »&'",;.'";"l'S"""' y\"» cieimee ee ties wee wiieereweg Fhée retem wee aéee ereeeeeee es: §;.%,@3,§99S eeeeetmg tine eii rem:e;e',::"'T§1e case was taker: up fey eewtmgz amder Sectéoe 1é'§'3'{:?i.f;;'.e_§?:§§e~~. eei; Netieee were iesued eieeg _..\..».wti,it:§':~_V'~:§:eta%§e§ qeestieenaireee Afier hearing :hel_ass:eSsfjee-,_£?i1e'--.!%se'eeéE.aeA' Aetherity was ef the VEEW tE2e%i__§t ie"':j;0j'i: cieeVr'*"~é;§h'eE.he'f; vehéeiee were eerehasee by izhéexeiéegeci "fie-eefees eefiey hire gurehase finance egr'e..e%'eee'~f er. ieeee, if the vehieies were e_ereha'eed§:'_'-;byV__:i;;§e""'~a'!ie.ge§§ Eeeeeeeg the eweershie eff3.%ihe;;1iee%*2%.e:i~es€ééeée e'n.E§,z"'§éJ'i'€%*:~':§heei and eat wiih {he aseeseeeCee3}ees%;...VT§5*;erefere';; the aseeseee was asked fie ea;fisie§7EieV:e_-hieev3'e§eie*jé'~:§f:e: $5? eeteeiiy ewes the ve%1%c:§es. The eseeeeee eeeie.eeiei§.._%:%:e.i efi the zreeseées were eweed E3? eee V-?;f§f§e*i:"'t?:e':,I egeee ieesee get. "§"%:e seie eé' ihe V"x:e?§"§::e5"'.%fe eueseeeeei year fa? §€§§"§C¥§§§C%f% was weer ee«$éeiee.%€ee:Véee'.e;-..-*§'%2e eeeeeeee wee eeeeiee fie ééie e eeieééee eeie a§..i;;':*:g,4:%;Le%%:E": ihe ieese eeeeeseeei, eeyeeeei eestéeeéere ' eee ee"ee eteeir exeeeeee eietéeg teeér ease, "§*ee eseeeeee "~§e'aereé'e%:e§ 3%? iee §§f'i§£§,%§§;%'S eeegiei fer Eeeéeeieg é;%x'/,/ A-e€§*ié'e §§":3s'. ' eeeeami Eedeegz Having gene tereegh the eeme; ihe esseeeéee eeiheréeg eeie éfeei the eseeeeee %*:a;e v.e e.ee féneneieg fez the eureheee of vehéeieeg eftee'?e'ee§.s§f_§";':.§";__"A_ mergirs meeey frem the customer; I: ES 5530 mtereeé was ehergee at 13% re 3,16%ee}e§§eed§r*i--§ 'ee-ee,__.theA' eerioe of repayment end 'c%1af:e":-ij_e e%i"e.§_:E§;a§ 'VVi::€'C,$:res;:: is Cefieeted in metaiiments, ThHe';=e;fere, ¥ehe..m§%'iaéeif; ef the aeseesee that the veh§eA§.§§A. wefe i--,:>;§r'e_%3>eieTed by them 5 fie': Cerreci. Reiyiegen the..e:a.tee3ent'e"'.eVf':~.:§'6" pereens; the iruek drivers; i_'§%:4 i%::e§d3_t§%éat':_4i:§3e3;"eaize purchased the vehicies uncjer fete' f§rée;ns:'iTe.§_' ee§'i'sta7eee frem the assessee aeé therefere;'TvL'i;-%1eVeeseeeeve is' not the eemer ef the 36 mete? veeieeféee e:e_r%e?j'-§_ee_»L'f§é'erefere; be $3 eei: eeiitéed fie ee. V eee:'e::';e%:§ ~Si§*e§§"a:E§,§ 2% eereeee fie whem seremeee é ii*%e.e'E:ee§*{ Es:ee~ee die' ace mm me, Fhereferef tee eseeesiee 'ev%'ee.%j%e:eee iee e*ee§*e::§eiiee eiaéezee ee ieeee :;eh§:;:«§es ,___e§'%ee~"ee§5; Eeeeee is iee 2&3 eerseee. Sim§%e§%\g, V3:i7ee%fee%e%;§----a§:'2 wee eieaiiezeee in eeeeeei' ef ether vehéeéee ate _eeV'e:«:Eeei ef Z853:/Egg Tees; the eeereeieeee ie e gem e? 2 WE Re,?E;28,?2%,!% céeimee by ihe eesessee wee eieeiieweefl eggréevee by tee seie ozeea, ihe eseeesee pyefesfwfeeaee epeeeé 'Ce ihe C€%F'§'1¥'fl%§SiG§§Ei"' ef Erzceme Tex {:5ae.g:§{ee'§e.}';---: _ eepeiiete eutherity was of the xséeezjghat eh-e"e-ee§eeSee<-ere; :3 ave discharged the erimary ems is"e'heee;e$135it..'é2»:éfie:eA___at xzeeéeies by shaming erigénaiv'TVee..§Cheee,_ éiifiis ef"i?§e._vye%§'§C£es_ 7 ené eise ieese agreements -tfzafi' 'iizefjehéyvézies were ieesed. gut when thVe'«-._;4$;'sse'esEwe{}.ff§.Lee~:_»>eeug?1t fie verify the Cieim eed eeintee:.e-agefeheV--VreVe_te&%%veV§Af$g".iteéw" show that the daim was f.':{>€:,:. etee: eéaimsg the ems feE__E_es:1 céeim with addétionai metefleis __ The eseessee did fie:
§reeeee'Aee§='ee se;:§§ Teeeeferef ee eeei greeee; i:3§,.;s.5%§§3€E§eie"£x;;;é%§'er:i"; eeefirmee the fleeing eeeereee e3! '::.§,g["' fiffieer. egeeexseé ea; tee eeme; the "'eeééeeeeve"*«;§%e%%ev:f*éee ee eeeeei {e the "ékieeeeie The Ekieeeei heE°i:f-- *3;
5:_zEeé~.'::iee C§§§§E ef eeereeieéiee hes righiiy eeee :e:e:::e<e~"e3s the eeeeeetieefi The eemmeee eee ieiiees *%Sliss;.:--eTe te ehe eeezeesee ee gieee by Ezhe eeeeesee have nee ,,<fi'mmm:wwm 3"' 2/ J, ........................ .. ' t.t.\\&.\&...~