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Issues:
1. Trading account addition of Rs. 4,000 2. Non-allowance of depreciation on truck Trading Account Addition of Rs. 4,000: The appeal involved disputes regarding a trading account addition of Rs. 4,000 and the non-allowance of depreciation on a truck. The assessee, a partnership concern deriving income from stone sales, had a turnover of Rs. 2,79,216. The net profit, subject to depreciation, was Rs. 55,903 as per accounts, resulting in a 16% profit rate. The Income Tax Officer (ITO) made an addition of Rs. 4,000 considering past history and discrepancies in labor payments. The ld. AAC confirmed this addition based on the assessee's past record. The assessee argued that similar additions were accepted in previous years. The tribunal, considering the past history and account defects, upheld the addition of Rs. 4,000, stating it was justified. Non-Allowance of Depreciation on Truck: The second issue pertained to the non-allowance of depreciation on a truck (RSR 4311). Although the truck was registered in another person's name, the assessee had control and possession of it for business purposes. The assessee claimed depreciation of Rs. 27,473, which was rejected by the ITO and the ld. AAC on the grounds of non-ownership. The assessee argued that despite legal ownership by another individual, the truck was under their exclusive control and used for business. Citing a Bangalore Tribunal decision allowing depreciation on a car under similar circumstances, the assessee contended for depreciation entitlement. The tribunal, following precedent cases, held that the assessee was entitled to depreciation on the truck. In conclusion, the appeal partially succeeded, with the tribunal ruling in favor of the assessee on the issue of depreciation on the truck.
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