Case Law Details
Akshaye Khanna Vs ACIT (ITAT Mumbai)
Assessee had been using speed-boat for travelling from Mumbai to Alibaug for his professional activities like acting, practice, health, maintenance, story telling etc. and hence, business asset has been utilized by assessee for commutation for professional work and therefore, the expenditure against the same was allowable to the assessee like any other travelling mode like motor-car etc. Another important fact to note is that the speed-boat forms part of the 15% block of Fixed Assets which is evident from depreciation chart as placed on record and therefore, constitute business / professional asset for the assessee. It is further noted that the assessee has claimed impugned depreciation on opening written down value of the speed-boat which is being carried forward from earlier AY and already merged under 15% block of fixed assets. Further, the assessee has suo-moto disallowed 25% of the expenditure on estimated basis to account for personal element / usage. Therefore, considering the totality of facts, impugned additions could not be sustained. Reversing the stand of lower authorities, we allow the appeal.
FULL TEXT OF THE ITAT JUDGMENT
1. Aforesaid appeal by assessee for Assessment Year [AY] 2012-13 agitate the order of Ld. Commissioner of Income Tax (Appeals)-4, Mumbai [CIT(A)], Appeal No. CIT(A)-4/IT-11/ACIT-16(1)/2014-15 dated 12/06/2017 qua confirmation of certain additions of Rs.9,22,380/- on account of expenditure on speed-boat owned by the assessee.
2.1 Briefly stated the assessee being resident individual is a film actor by profession. The assessment for impugned AY was framed by Ld. Assistant Commissioner of Income Tax-16(1), Mumbai [AO] in scrutiny assessment u/s 143(3) on 03/12/2014 wherein the income of the assessee was assessed at Rs.124.39 Lacs after certain additions as against returned income of Rs.105.30 Lacs e-filed by the assessee on 26/09/2012. The assessee has been saddled with disallowance of Rs.9,22,380/- on account of expenditure on speed-boat owned by him which is the sole subject matter of this appeal.
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