TaxTMI 
TaxTMI 
TaxTMI 
2017 (9) TMI 1286
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....ds loss on fixed assets (which was duly disclosed in the Tax Audit Report) which is a sheer inadvertent error. That the above grounds of appeal are without prejudice to each other. That the appellant reserves its right to add, alter, amend or withdraw any ground of appeal either before or at the time of hearing of this appeal." 3. The brief facts of the case are that the assessee filed his return of income declaring at Rs. 34,74,20,950/- on 14.10.2010. He has also filed a revised return on 31.3.2012 declaring income at Rs. 34,94,15,822/- which was processed under section 143(1) of the Income Tax Act, 1961 (hereinafter referred as the Act). The case of the assessee was selected for scrutiny. A notice u/s. 143(2) of the Act was issued and served upon the assessee. In response to the same, the A.R. of the assessee attended the proceedings and filed the necessary details information / documents alongwith the books of accounts and vouchers. The Assessee is an Advocate by profession and derived income from Profession, income from Capital Gain and income from other sources. The assessment in this case was completed u/s. 143(3) of the Act on 12.1.2013 at an income of Rs. 35,10,91,3....
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....age no. 87 to 92 and reiterated his submission that the car was used for the assessee's professional pursuits. He further draw our attention towards the page no. 68 & 94 which are the copy of the Motor Insurance Cover Note dated 04.05.2009 and copy of Credit Card statement of Standard Chartered Bank of the assessee. He further draw our attention towards page no. 106, 107, 111, which are the copies of ledger account of the assessee for the period 31.3.2006 to 31.3.2010 showing the date 16.05.2009 on which date a payment of Rs. 22 lacs was debited to Mr. K. Iyer towards part payment of Bentlay Car; copy of Bank statement of assessee showing DD dated 16.5.2009 to Mr. PK Iyer of Rs. 22 lacs and page no. 111 is a copy of cash receipt received from Sh. Harish N. Salve, 42, Purvi Marg, Vasant Vihar, New Delhi - 57 of Rs. 1,52,00,000/- of Draft/Cheque No. 083239 and 002199 and 004606 dated 16.5.2009, 15.10.2009 and 23.11.2009 of Citi Bank in full and final payment towards the Benteley Car RegistrationNo. DL3CBN 3636 of Mr. P.K. Iyer, 36, Sarojini Devi Road, Secunderabad - 500003. In view of the above, Ld. Counsel of the assessee had stated there is no documentary evidence which could suppo....
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....come by claiming depreciation at Rs. 11,40,000/- and loss on sale of fixed assets at Rs. 1,69,498/-. The assessee did not voluntarily surrender the claim of depreciation, it was only when a show cause was issued by the Assessing Officer as to basis of claim of depreciation for entire year. Before issuing show cause the assessee was sitting quietly. This shows that this was not mere a bona fide mistake or error. Ld. DR further stated that the assessee was unable to prove that he had filed the true particulars of his income and expenses during the assessment proceedings. The facts clearly show that though the car was purchased and delivered in November 2009, the assessee had wrongly claimed depreciation for the entire year. He had thus tried to make wrong claim in spite of the fact that these facts were very much in his knowledge. The seller of the car has categorically mentioned that the car has been delivered to the assessee on 23.11.2009. Ld. DR stated that it is thus clear case of reducing the income tax liability and concealing the income. The fact was very much in the knowledge of the assessee and the claim of depreciation and loss on sale of assets is ex facie bogus which attr....
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....and thus eligibility for full year. The Tax Auditor, however, certified claim of depreciation for full year. In order to avoid any unnecessary tax implications, I, voluntarily on my own motion, have attached a revised computation of my taxable income by disallowing 50% of the depreciation claimed on this addition and has reduced my claim for refund of tax to Rs. 6,87,300/-. You are requested to take the attached computation of my income and tax liability into consideration while framing the assessment. For any further information/ clarification, please let me know." 7.2 We further note that during the appellate proceedings, the assessee has filed an affidavit which is placed in Paper Book at page no. 87 to 92 wherein it was stated that assessee has received a copy of assessment order dated 12.1.2013 in which it was noticed that one of the disallowance relates to depreciation claimed in respect of Bentley Car Number DL3C BN 3636 owned by assessee. At the time of assessment his account asked the assessee for evidence to establish that the assessee was using the car for professional purposes since the day of its acquisition in May, 2009. It was stated in the affidavit that ....
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....sideration from wdv of the block under block concept of depreciation. There was a sheer accounting error in debiting loss incurred on sale of a fixed asset to profit & loss account instead of reducing the sale consideration from wdv of the block under block concept of depreciation. There was a separate line item indicated loss on fixed asset of Rs. 1,69,429/- in the Income & Expenditure Account which was omitted to be added back in the computation. The error went un-noticed by the tax auditor as well as the same was overlooked while certifying the Income & Expenditure Account and by the tax consultant while preparing the computation of income. Hence, there was no intention to avoid payment of taxes. The quantum of assessee tax payments clearly indicates the assessee intention to be tax compliant. Moreover, the assessee with a returned income of 34.94 crores and tax payment of more than Rs. 10.85 crores which does not show any mala fide intention to conceal an income of Rs. 13.09 lacs (not even 0.4% of returned income) with an intention of evading tax of Rs. 4 lacs (not even 0.4% of taxes paid). Therefore, in view of the abovementioned facts and circumstances, the allegation that as....