M/S SCANIA COMMERCIAL VEHICLES INDIA PVT LTFD,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-6(1)(1), BANGALORE
What did the Tribunal hold?
The Tribunal allowed depreciation on new assets as the purchase was through banking channels and recorded in audited books. It also directed the AO to re-examine the warranty provision and rental income claims. The Tribunal restored the depreciation claim on buses to the AO for verification of usage dates and income offered.
What were the facts?
The assessee claimed depreciation on new assets and provision for warranty. The Assessing Officer disallowed depreciation due to unexplained sources of funds and disallowed warranty provision as contingent. The assessee also disputed disallowance of rental income and other expenses.
What were the issues?
Whether depreciation on assets with unexplained sources of funds is allowable and if warranty provision is a contingent liability. The genuineness of rental income and depreciation on leased buses were also key issues.
Which sections of the Income-tax Act were involved?
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- Rotork Controls India Pvt. Ltd. v. CIT739 citing314 ITR 62 · 2009 · SC
Income Tax Appellate Tribunal, ‘C’ BENCH : BANGALORE
Before: SHRI PRASHANT MAHARISHI, VICE – & SHRI KESHAV DUBEY
PER PRASHANT MAHARISHI, VICE – PRESIDENT
ITA No. 261/Bang/2022 is filed by M/s. Scania Commercial Vehicles India Private Limited for assessment year 2017-18 against the Assessment Order passed by the National Faceless Assessment Centre, Delhi on 18.02.2022 u/s. 143(3) r.w.s. 144C(13) r.w.s 144(B) of the Income Tax Act, 1961 wherein the returned income of the Assessee at Rs. Nil/- is assessed at a loss of Rs. 161,63,03,274/-. The Assessee is aggrieved with that and is in appeal before us.
ITA Nos. 261 & 777/Bang/2022
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