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TMI Blog2024 (12) TMI 908X X X X Extracts X X X X X X X X Extracts X X X X ..... partly. Learned assessing officer has mentioned in his order that the assessee could not lead any evidence such as log book, date of travel, distance travelled etc. of the car to show the travel undertaken. The same is the position before first appellate authority. Appellant assessee as an individual is at the command of her sole proprietor business. The decision-making rests in the assessee herself. The assessee, being the exclusive owner of the business, straight forward tax structure of direct and simple taxation has to be followed in respect of assessee s business income which is reported on the assessee s tax return. Since there is no legal requirement of discloser of financial information publicly, business activities and financial re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer against the assessee s claim of depreciation. 2. The brief facts related to this appeal state that the appellant assessee filed original return of income on 28.09.2013 for A.Y. 2013-14, declaring total income of Rs. 17,19,890/-. The return was processed u/s. 143(1) of the Act. The case was selected for scrutiny under CASS and an assessment order u/s. 143 (3) of the Act was passed on 07.12.2015 by accepting the return of income. Subsequently, the case was reopened to verify the claim of depreciation of asset, being car. Notice u/s. 148 of the Act was issued and assessee file her return on 11.04.2018, showing the income of Rs. 17,19,890/-. During the assessment proceedings, statutory notices u/s. 143(2) r.w.s 142(1) of the Act were iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the claim of depreciation on the purchase of new car for the year under consideration? 6. Learned representative for the appellant assessee has argued that the car was though, purchased in the name of assessee s husband Mr. Chetan Nayyar, the price of the car was paid by the assessee. It was further argued that the car was in the use of assessee s business. The assessee was thus entitled for depreciation on the said car. The assessee has referred following case law in support of his arguments:- a) Mysore Minerals Ltd. V. Commissioner of Income Tax, [1999] 239 ITR 775 (SC). b) Commissioner of Income Tax V. Podar Cement Pvt. Ltd., [1997] 226 ITR 625 (SC). c) Commissioner of Income Tax V. Mirza Ataullaha Baig, [1993] 202 ITR 291 (Bom-HC). d) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was neither owned by the assessee nor was used for the purposes of the assessee s business. Learned CIT(A) has concurred with the assessment order. 9. Let s now examine the case law referred by the assessee. 9.1 In Mysore Minerals Ltd. (supra), Hon ble Supreme Court has held that in a case when the assessee is in possession of building used for the purpose of business on part payment of price and the building is not registered in assessee s name. In such a case, the assessee shall be treated to be the owner of the building for the purpose of section 32 and the assessee shall be entitled to depreciation on it. 9.2 In Podar Cement Pvt Ltd. (supra), the issue was as to whether the rental income from house property, which had come to vest in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egistered in the names of persons other than the assessee. 9.6 In Basti Sugar Mills Ltd., (Supra), Hon ble Delhi High Court has relied Mirza Ataullaha Baig (Supra) and held that where the car was utilized by the company for business purpose but no registration was done in its name, then assessee company would still be entitled to depreciation on such vehicle being used for assessee s business. 9.7 In Electro Ferro Alloys Ltd. (supra), Ahemdabad Bench of the Tribunal has referred and relied Basti Sugar Mills Ltd. (supra) and Mysore Minerals Ltd. (supra). 9.8 In Gopal Fabrics (Supra), Ahmedabad Bench of this Tribunal has referred and relied Mysore Minerals Ltd. (Supra). 9.9 In Edwise Consultants Pvt Ltd. (supra), Mumbai Bench of this Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ublicly, business activities and financial records can remain confidential giving certain level of discretion to the assessee as a sole proprietor of her business concern, the assessee should have been more careful in preserving the evidence by way of maintaining a log book or by documenting the terms and conditions with her husband with respect to the use of car for the purpose of assessee s business. The allowance of motor car expenses, insurance paid, etc. u/s. 37 of the Act, cannot automatically entitle assessee for the depreciation u/s. 32 of the Act as both the sections are mutually exclusive. The assessee has thus failed to prove that the car was used for the purpose of assessee s business wholly or in part. Assessee is thus not enti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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