M/S.APPOLO TYRES LTD vs. THE DEPUTY COMMISSIONER OF INCOME-TAX

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS FRIDAY, THE 30TH DAY OF JULY 2021 / 8TH SRAVANA, 1943 ITA NO. 215 OF 2013 AGAINST THE ORDER IN ITA 729/2008 OF I.T.A.TRIBUNAL,COCHIN BENCH, ERNAKULAM APPELLANT/S: M/S.APPOLO TYRES LTD 6TH FLOOR, CHERUPUSHPAM BUILDINGS, SHANMUGHAM ROAD, KOCHI-31. (PAN: AAACA 6990Q) BY ADVS. SRI.JOSEPH MARKOSE (SR.) SRI.V.ABRAHAM MARKOS SRI.ABRAHAM JOSEPH MARKOS SRI.BINU MATHEW SRI.TOM THOMAS KAKKUZHIYIL RESPONDENT/S: THE DEPUTY COMMISSIONER OF INCOME-TAX CIRCLE 1 (1) ERNAKULAM, KOCHI-682018. BY ADVS. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.P.K.R.MENONSR.COUNSEL GOITAXES SRI.JOSE JOSEPH, SC, FOR INCOME TAX SRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT SRI.K.M.V.PANDALAI, INCOME TAX DEPARTMENT THIS INCOME TAX APPEAL HAVING COME UP FOR HEARING ON 30.07.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

I.T.A. No.215/2013 -2- J U D G M E N T S.V. Bhatti, J. Heard learned Senior Counsel Mr. Joseph Markos and learned Standing Counsel Mr. Christopher Abraham for parties. 2. M/s.Apollo Tyres Ltd., Kochi/Assessee is the appellant. The Deputy Commissioner of Income Tax/Revenue is the respondent. The subject appeal is at the instance of Assessee from the order of Income Tax Appellate Tribunal (for short ‘the Tribunal') Cochin Bench in ITA No.729/Coch/2008 dated 08.02.2013. The controversies relate to the Assessment Year 2005-06. The appeal deals with the questions of disallowance made by the Tribunal of the expenditure incurred by the assessee towards club expenses and disallowance of part

I.T.A. No.215/2013 -3- of depreciation of Gurgaon building. 2.1 The substantial questions read as follows: “1) Whether on the facts and in the circumstances of the case the Tribunal is justified in law in sustaining the disallowance of part depreciation of Gurgaon building aggregating to 21,03,979/- in relation to let out portion to Apollo International Ltd. 2) On the facts and in the circumstances of the case the Tribunal is justified in law in holding that payments made to clubs on account of services and facilities can be allowed only if commercial expediency is proved even after recording a finding in the impugned order that entrance fees/subscription represents allowable business expenditure.” 3. The assessee, raising similar questions of law, filed ITA No.26/2013 for the Assessment Year 2003-04. By a separate order the appeal has been dismissed. The reasons stated in ITA No.26/2013 are adopted while considering and disposing of the substantial questions framed in this appeal as well.

I.T.A. No.215/2013 -4- Hence, the questions are answered in favour of the Revenue and against the assessee. Appeal fails, dismissed accordingly. No order as to costs. Sd/- S.V.BHATTI JUDGE Sd/- BECHU KURIAN THOMAS JUDGE jjj

I.T.A. No.215/2013 -5- APPENDIX OF ITA 215/2013 PETITIONER ANNEXURE ANNEXURE A1 TRUE COPY OF ASSESSMENT ORDER DATED 31.12.2007 OF THE RESPONDENT. ANNEXURE A2 TRUE COPY OF APPELLATE ORDER DATED 26.3.2008 OF THE COMMISSIONER OF INCOME TAX (APPEALS) II, KOCHI. ANNEXURE A3 CERTIFIED COPY OF ORDER DATED 8.2.2013 OF THE INCOME TAX APPELLATE TRIBUNAL, KOCHI BENCH IN I.T.A. NO. 729/COCH/2008.