TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Assessee's Appeals Partially Allowed, Revenue's Dismissed. Section 153A Validity Upheld. ITAT Decision on Vehicle Expenses.</h1> The court partially allowed the assessee's appeals and dismissed the revenue's appeal. The validity of proceedings initiated under section 153A was ... - Issues Involved:1. Validity of proceedings initiated u/s 153A.2. Disallowance of vehicle maintenance expenses.3. Depreciation on vehicles.4. Addition on account of undisclosed sales.5. Addition on account of excess stock.Summary:1. Validity of Proceedings Initiated u/s 153A:The assessee contended that the proceedings initiated u/s 153A and the order passed by the AO were without jurisdiction, unlawful, and invalid. The CIT(A) rejected these contentions, but during the hearing, the assessee did not press these grounds. Therefore, grounds No. 1 to 10, 12, and 13 were dismissed as not pressed.2. Disallowance of Vehicle Maintenance Expenses:In ITA No. 1313/Chd/2012, the AO made an addition for personal usage of the vehicle, disallowing 1/5th of the expenses. The CIT(A) confirmed this addition. However, the ITAT found that the original assessment had already disallowed a sum of Rs. 60,000 for personal usage, and no new material was found during the search. Therefore, the ITAT deleted the addition.In ITA No. 1314/Chd/2012, similar facts were present, and the ITAT followed the same reasoning to delete the addition.In ITA No. 1315/Chd/2012, the ITAT directed the AO to disallow only 1/10th of vehicle maintenance towards personal usage, as no addition was made originally, and there was no evidence of FBT paid.In ITA No. 1316/Chd/2012, the AO disallowed depreciation on cars, allowing only 15% instead of 50%. The CIT(A) confirmed this, and the ITAT found no force in the assessee's submissions, confirming the CIT(A)'s order.3. Depreciation on Vehicles:The ITAT confirmed that depreciation on cars should be allowed at 15% instead of 50%, as the vehicles did not qualify as 'commercial vehicles' under the relevant Income Tax Rules.4. Addition on Account of Undisclosed Sales:In ITA No. 1317/Chd/2012, the AO added Rs. 3,34,965 as income from undisclosed sales based on seized documents. The CIT(A) confirmed this, and the ITAT agreed, finding no correlation between unrecorded sales and the stock found during the search.Similarly, for another set of documents, the AO added Rs. 4,58,106 as profit from undisclosed sales. The CIT(A) and ITAT confirmed this addition, again finding no correlation with the surrendered stock.5. Addition on Account of Excess Stock:The AO added Rs. 2,08,35,789 for unexplained investment in stock (gold) beyond the surrendered amount. The CIT(A) deleted this addition, accepting the assessee's argument that the stock was valued at market price during the search, while the trading account was at cost price. The ITAT confirmed the CIT(A)'s order, finding no difference in the physical quantity of stock and the amount surrendered.Conclusion:All appeals of the assessee were partly allowed, and the appeal of the revenue was dismissed. The order was pronounced in the open court on 30.9.2013.
TaxTMI 
TaxTMI 
