TaxTMI 
TaxTMI 
2016 (4) TMI 412
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.... of appeal: 1. Whether learned Commissioner of Income Tax(Appeals) is right in deleting the addition made by the A.O. in the valuation of the motor cars by ignoring the contradiction in the stand of assessee, viz., giving insured value of motor cars with evidence in A.Y. 1997-98 and pleading impracticability of the same in A.Y. 19998-99. 2. Whether learned Commissioner of Income Tax(Appeals) is right in substituting the WDV method for valuation of motor cars without pointing out any inaccuracy in invoking & application of Rule 20 of the IIIrd Schedule. 3. Whether learned Commissioner of Income Tax(Appeals) is right in discarding the estimate of debt made by the A.O. and accepting the assessee's estimate holding it....
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...., the Revenue is before us with the present appeal. 3. In grounds no. 1, the Revenue has raised that the Commissioner of Wealth Tax (Appeals) ignored the contradiction in the stand of the assessee that in assessment year 1997-98, the insured value of motor cars was available and in subsequent year i.e. assessment year 1998-99, the assessee pleaded impracticability of providing the same. In ground No. 2, the Revenue has raised the issue of substitution of WDV Method for valuation by the method adopted by the Assessing Officer. 3.1 The learned Commissioner of Income Tax (Departmental Representative) submitted that market value as per WDV was substituted by the assessee in place of insured value without any valid reason and the Assessing....
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....ook the insured value of the vehicles as value of the motor cars but this year the assessee expressed inability to provide such value, and thus in absence of the such insured value , the AO computed the valuation of Motor Cars at Rs. 8,28,77,949 after allowing deduction out of the cost of the old and new cars as reflected in scheduled of fixed assets to the balance sheet as on 1-4-1997. The CWT(A) has followed the findings of the Hon'ble Chennai High Court in the case of T.V. Sundaram Iyenger and Sons Ltd. (supra), wherein the WDV of cars was held as basis of market value in the absence of any material produced by the Revenue to show that WDV didn't represent the market value of the vehicle . The relevant findings of the CWT(A) is reproduce....
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.... the Tribunal had adopted the WDV as market value in the earlier assessment years in assessee's own case. No material is produced before us by the Revenue to show that the WDV does not represent the market value of the vehicle. 4. In view of the foregoing conclusions, we find no error in the order of the Tribunal and hence no substantial question of law arises for consideration in this court. Hence, the above tax cases are dismissed. No costs. Consequently, the connected TCMP Nos. 750 to 753 of 2005 are closed. 6.5 On going through the facts of the case, I find that the Appellant, being a NBFC, has large no. of customers with whom leasing has been carried out. Hence, it is impractical for the Appellant to trace the val....
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....ings of the CWT(A) and thus we uphold the same. Accordingly, ground nos. 1 & 2 raised by the Revenue are dismissed. 4. Ground no. 3 raised by the Revenue is in respect of debt claimed by the assessee in relation to taxable assets. Learned Sr. Departmental Representative submitted that if the assessee failed to bring out the exact amount of the debt corresponding to the motor cars then there was no option with the Assessing Officer except to estimate the debt corresponding to those motors. 4.1 Learned Authorized Representative, on the other hand, submitted that computation of debt by the Assessing Officer at Rs. 2 crores was without any basis as against the debt of Rs. 5,90,83,620/- was based on applying the ratio of total debt to tota....