Income Tax Appellate Tribunal - Kolkata
Babulal Krishna Gopal, Raniganj vs I.T.O.,Ward-3(1), Asansol on 30 August, 2019
IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH "SMC" KOLKATA Before Shri S.S, Godara, Judicial Member ITA No.648/Kol/2019 Assessment Year:2010-11 Babulal Krishna Gopal, बनाम Income Tax Officer, 108, J.L. Nehru Road, P.O. / Ward-3(1), Apcar Garden Raniganja, Dist. Burdwan V/s . West, P.O. Asansol, Dist.
Pin713347 Paschim Burdwan-713304
[PAN No.AACFB 7763 M]
अपीलाथ /Appellant .. यथ /Respondent
अपीलाथ क ओर से/By Appellant None
यथ क ओर से/By Respondent Shri Satyajit Mondal, Addl. CIT-SR-DR
सुनवाई क तार ख/Date of Hearing 26-08-2019
घोषणा क तार ख/Date of Pronouncement 30-08-2019
आदे श /O R D E R
This assessee's appeal for assessment year 2010-11 arises against the Commissioner of Income-tax (Appeals)-Asansol's order dated 19.12.2018 passed in case No.83/CIT(A)/ASL/ITO/Wd-3(1)/Asl/130-14, involving proceedings u/s. 143(3) of the Income Tax Act, 1961; in short 'the Act'.
Case called twice. None appears at assessee's behest. Case file suggests that assessee has already placed on record his written submission. I therefore proceed to decide the instant case ex pare against the assessee. Heard learned departmental representative. Case file / assessee's written submission perused.
2. The assessee's first substantive grievance challenges correctness of both the lower authorities action disallowing interest amount of ₹59,795/- u/s 40A(2)(b) of the Act to be excessive in case of specified related parties. Learned departmental representative fails to dispute that neither of the lower authority has given any finding ITA No.648/Kol/2019 A.Y. 2010-11 Babulal Krishna Gopal Vs. ITO Wd-3(1), Asl. Page 2 on the market rate of interest in the respective orders. I therefore conclude that the impugned disallowance has no legs to stand in absence of any market rate of interest payment determined by the authorities. The assessee succeeds in his former substantive ground.
3. Next comes depreciation claim disallowance of ₹2,905/- in relation to assessee's forming part of block asset. Both the lower authorities hold that he has used the vehicle in question for his own business than on hire basis. Learned departmental representative fails to dispute that the assessee had earlier used the very vehicle on hire basis and therefore, the impugned depreciation @ 30% is allowable since the relevant block of assets continues to operate. This second substantive ground also accepted.
4. Coming to depreciation disallowance on motor car and corresponding expenses disallowed @ 5% amounting to ₹4,293/- and ₹3,755/-; respectively on account of personal use, I find merit in learned departmental representative's argument that such a personal usage element cannot be altogether denied in the given facts and circumstances. These two substantive grounds fail therefore.
5. This assessee's appeal is partly allowed in above terms.
Order pronounced in open court on 30/08/2019 Sd/-
(S.S. Godara)
Judicial Member
Kolkata,
*Dkp/Sr.PS
दनांकः- /08/2019 कोलकाता
आदे श क त ल प अ े षत / Copy of Order Forwarded to:-
1. अपीलाथ /Appellant-Babulal Krishna Gopal, 108, J.L. Nehru Road, P.O. Raniganj, Dist. Burdwan Pin-713347
2. यथ /Respondent-ITO Wd-3(1), Apcar Garden West, P.O. Asansol, Dist. Paschim Burdwan Pin-713304
3. संबं"धत आयकर आयु%त / Concerned CIT
4. आयकर आय% ु त- अपील / CIT (A)
5. &वभागीय )त)न"ध, आयकर अपील य अ"धकरण कोलकाता / DR, ITAT, Kolkata
6. गाड+ फाइल / Guard file.
By order/आदे श से, सहायक पंजीकार आयकर अपील य अ"धकरण, कोलकाता ।