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आदेश/Order
Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the assessee against the order dated 11.6.2018 of the Commissioner of Income Tax (Appeals)-5, Ludhiana [hereinafter referred to as ‘CIT(A)’].
An adjournment has been sought by the Ld. Authorized Representative in this case, however, after going through the record of the case, we deem it appropriate to decide the case after hearing the Ld.
ITA No. 1065/Chd/2018- Shri Sharman Udyog Pvt Ltd., Ludhiana 2 DR. However, Shri Sudhir Seghal, Ld. Advocate voluntarily offered to
assist this Court on behalf of the assessee.
The sole issue raised in this appeal is relating to the adhoc
disallowance made by the Assessing Officer and confirmed by the Ld.
CIT(A) out of vehicle repair & maintenance expenses and also
proportionate disallowance of personal use of Company Car.
We have heard the rival contentions of the Ld. Representatives of
the parties and gone through the record. Shri Sudhir Sehgal, Ld. proxy
counsel for the assessee, at the outset, invited our attention to the order
of the CIT(A), wherein, it has been mentioned that vehicles were
registered in the name of the assessee company and the perquisite of car
used by the director is added in their individual Income-tax return.
Once the prerequisite of car has been added into the income of the
director and the vehicle were registered in the name of the company,
under the circumstances, the disallowance on account of maintenance of
car or personal use of the director was not warranted.
In view of this, we do not find any justification on the part of the
lower authorities to make the impugned addition. The same is
accordingly ordered to be deleted.
ITA No. 1065/Chd/2018- Shri Sharman Udyog Pvt Ltd., Ludhiana 3 The appeal of the assessee is hereby allowed. Order dictated and pronounced in the Open Court immediately on completion of hearing.
Sd/- Sd/- (अ�नपूणा� गु�ता / ANNAPURNA GUPTA) (संजय गग� / SANJAY GARG) लेखा सद�य/ Accountant Member �या�यक सद�य/ Judicial Member
Dated : 31.10.2019 “आर.के.”
आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�त/ CIT 4. आयकर आयु�त (अपील)/ The CIT(A) 5. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड� फाईल/ Guard File
आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar