TaxTMI 
TaxTMI 
2022 (11) TMI 611
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....in filing the appeal before us and also on merit and we have also heard the Ld. DR appearing for the Revenue. We have perused the explanation rendered by the assessee for condonation of delay where from it appears that the appeal be supposed to be filed before 14th September, 2019 when the Director of the company was taking care of his mother-in-law who was seriously ill within a period of few month the lock down was started due to Covid pandemic spread all over the world where the Director of the company Shri Atul K. Shah was also become one of the Victims. Supporting documents to this effect was duly filed before us. Upon careful reading of the same, it appears that the delay caused due to genuine reason and hence, the same is condoned. 4. The assessee has come up in appeal mainly on following grounds: "1. The learned CIT(A) has erred in confirming the addition of Rs. 7,25,000/- as unexplained credit U/s 68 of the Income Tax Act on the ground of its genuineness. Your appellant submits that it has fulfilled all the ingredients of section 68 of the Income Tax Act. It has proved identity, creditworthiness and genuineness of the transaction. Under the circumstances, the a....
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.... the appellant. We have perused the bank statement of the appellant company as well as the bank statement of Shri Atul K. Shah. It appears that the transaction carried out through the proper bank channel and the genuineness of such transactions cannot be doubted. The summary of the bank statement of the appellant company qua Shri Atul K. Shah is as follows: Date Amt.Rs. Bank name A/c.no. Name of A/c. Holder. 16/03/2012 7,00,000/-Cr. Sarvodaya Comm .co. op. Bank - Paldi, Ahmedabad. 1000721 Shri Vardhman Ornaments Pvt. Ltd. 16/03/2012 7,00,000/-Dr. Sarvodaya Comm .co. op. Bank - Paldi, Ahmedabad. 1000030 Shri Atul K Shah. 03/02/2012 25,000/-Cr. Sarvodaya Comm .co. op. Bank - Paldi, Ahmedabad. 1000721 Shri Vardhman Ornaments Pvt.Ltd. 03/02/2012 25,000/-Dr Sarvodaya Comm .co. op. Bank -Paldi, Ahmedabad 1000988 Shri Atul K Shah It further appears that the accounts of the appellant company were audited under the provision of Section 44AB of the Act wherein no such defect in fact the above fund were source from OD account of the assessee company which is running by Mr. Atul K. Shah and his proprie....
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.... The addition on account of membership fees of Rs. 1,50,000/- paid to All India Gems & Jewellery Federation has been challenged before us. It is the case of the assessee that such membership paid every periodical years has been allowed as business expenses. In that view of the matter, we do not find any justification in making such addition for the year under consideration, the same is, thus, deleted. 12. The addition of Rs. 1,23,522/- on car depreciation has been challenged before us. The observation made by the Ld. AO in this regard is as follows: "10.1 In this respect, after much persuasion, the assessee has vide letter dated: 28/01/2015 submitted a copy of the bill evidencing purchase of such vehicle. A perusal shows that such vehicle stands in the name of Sh. Hemantkumar Amrutlal Patel with bill dated : 24/03/2012 and amounting Rs. 12,99,243/-. The Insurance papers also bear the name of this person. Accordingly, it was again issued a show cause notice dated: 13/02/2015 which reads as under: " --------- A perusal of the bill to evidence the purchase of vehicle - XUV shows that the same stands in the name of Sh Hemant Kumar Amrutlal Patel. As such, the vehic....
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.... own name, rather allows deliberately the title registration in the name of other person, then such person cannot claim its ownership to the exclusion of the registered owner/purchaser of the property. * Merely because the said cars have been shown in the balance sheet or books of account as assets of the tax payer, did not mean that the tax payer had become the owner of the same. 10.4 The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) in a recent case of Edwise Consultants Pvt. Ltd. Vs. ACIT (391/MUM/2011) has, inter alia, considered the matter regarding allowability of depreciation when the cars were registered in the name of the directors but were financed and recorded as assets by the company. Hon'ble Tribunal has reached the finding that depreciation shall not be allowed unless it is established that it is "beyond the control' of the tax payer to register the asset in its name. Thus, merely financing the asset shall not suffice to claim the ownership. 10.5 In view of the facts available on record and the discussion made herein above, it is inferred that the XUV was registered in the name of the director of the company and since the ....