9911796707
TMI Blog2018 (11) TMI 257X X X X Extracts X X X X X X X X Extracts X X X X ..... emphasise much on this issue. Therefore, taking into consideration overall circumstances, we confirm the adhoc disallowance which has been made on estimate basis. Disallowance with regard to the depreciation - Held that:- It is pertinent to observe that it is highly difficult to bring demonstrative evidence before the AO showing exclusive user of the cars for the business of the assessee. In the given facts and circumstances, we deem it appropriate to remit this issue to the file of the AO. AO shall find out if the cost of purchase is borne by the company, then it will be construed that de facto vehicle is owned by the assessee company. For example, if a particular vehicle was purchased on loan and instalments were paid from the accounts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Travelling Expenses 40,714 27,369/- Conveyance Expenses 50,027 Telephone expenses 24,745/- Motor Car Expenses 42,718/- Total 1,70,294 1,71,784 and (b) the ld.CIT(A) has erred in confirming disallowance of depreciation amounting to ₹ 5,50,334/- and ₹ 7,88,506/- claimed on motor cars. There is no disparity of facts on all vital points, therefore, for the facility of reference, we take up the facts from the Asstt.Year 2009-10. 3. The assessee at the releva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under: A perusal of the above order of Hon'ble High Court indicates that as far as ownership of motor cars is concerned, depreciation is admissible to an assessee even if the said car is not registered in the name of such assessee but has been used for the purposes of assessee's business. It is seen that there is a slight distinction between the facts of the case decided by Hon'ble High Court and those existing in the present appeal In the case before Hon ble High Court, the relationship between the owners in whose name motor cars were registered and the persons who were claiming depreciation was established by way of an agreement. In the instant case the appellant company has not been able to produce any agreement or ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed and the grounds of appeal raised are dismissed. 4. In the next ground of appeal, grievance of the assessee is that the ld.CIT(A) has erred in confirming disallowance of depreciation on motor car amounting to ₹ 5,50,334/- in A.Y.2009-10 and ₹ 7,88,506/-. We find that the ld.AO took note of registration number of cars and observed that these cars were registered in the names of directors and shareholders. He construed that cars were not used by the assessee, and therefore, it is not entitled for depreciation. Before the ld.CIT(A) it was contended that even if the car is not registered in the name of company, then also depreciation would be granted, if it is established that vehicles were owned by the company. The ld.CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d be admissible to the assessee, even if the cars are not registered in the name of the company. The ld.CIT(A) upheld the denial of depreciation on non-establishment of their user for the purpose of business. It is pertinent to observe that it is highly difficult to bring demonstrative evidence before the AO showing exclusive user of the cars for the business of the assessee. In the given facts and circumstances, we deem it appropriate to remit this issue to the file of the AO. The ld.AO shall find out if the cost of purchase is borne by the company, then it will be construed that de facto vehicle is owned by the assessee company. For example, if a particular vehicle was purchased on loan and instalments were paid from the accounts of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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