2012 (7) TMI 1132

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....eal by the assessee for the assessment year 2006-2007 is directed against the order of the Commissioner of Income-tax (Appeals)-XIV, Ahmedabad dated 21.10.2009. 2. The only effective ground of the appeal Revenue reads as under: "1.1 That the ld.CIT(A) has erred ion confirming the disallowance of Rs. 50,260 being depreciation on car." 3. The learned counsel for the assessee submitted....

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.... the CIT(A) to the Tribunal. The learned DR has opposed the submissions of the learned counsel of the assessee. He referred to para 2.3 of the CIT(A) order in support of its argument that the assessee neither before the AO nor before the CIT(A) has submitted any evidence for the use of this vehicle for the purpose of business of the assessee-company. He submitted that the assessee has not produced....

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....f the director of the assessee-company. In our considered opinion, since the vehicle was purchased out of the funds of the assesseecompany and was shown as an asset in its balance sheet, the ownership of the vehicle continuous with the assessee-company, and therefore, it is entitled to deduction of depreciation, provided all the conditions of the section 32 for claim of the depreciation were ....

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.... before the AO or before the CIT(A), we find that in case the vehicle was used for non-business purpose of the assessee, suitable disallowance could be made out of the vehicle running expenses. But so far as the claim of depreciation is concerned, since the ownership of the vehicle was with the assessee-company and the vehicle was put to use during the relevant period, the claim of depreciation on....