2011 (1) TMI 1523 - AT - Income Tax

Summary

Issues involved:
Revenue questioning first appellate order on whether Ld CIT(A) erred in allowing claimed depreciation on motor car registered in name of director.

Summary:

The Revenue challenged the first appellate order regarding the allowance of claimed depreciation on a motor car registered in the name of one of the company's directors. The Revenue relied on the assessment order where the claimed depreciation was disallowed. The appellant argued that the vehicle was purchased with the company's funds and used for business purposes, even though it was registered in the director's name. The appellant cited relevant case laws to support their argument. The Ld CIT(A) decided in favor of the assessee, following previous tribunal decisions and jurisdictional High Court rulings. The tribunal upheld the first appellate order, stating that depreciation was allowable for vehicles owned by the company and used for business, even if registered in the directors' names. The issue was decided in favor of the assessee based on the explanations and legal precedents presented. The tribunal did not find any reason to interfere with the first appellate order, and thus, the appeals were dismissed.