JCIT (OSD) Vs Kingfisher Airlines Limited (ITAT Bangalore)
The first issue is related to disallowance of helicopter expenses. We notice that the A.O. was constrained to make adhoc disallowance since the assessee has failed to furnish details called for by the A.O. We also notice that the assessee did not appear before Ld. CIT(A) also. In effect, the assessee did not furnish details of helicopter expenses as sought by the A.O. even before the Ld. CIT(A). Under these set of facts, we are of the view that the Ld. CIT(A) was not justified in deleting the disallowance. However, in the interest of natural justice, we are of the view that the assessee may be provided with one more opportunity to furnish the details called for by A.O. Accordingly, we set aside the order passed by Ld. CIT(A) on this issue and restore the same to the file of the A.O. for examining it afresh.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
All the four appeals filed by the revenue are directed against the orders passed by Ld CIT(A)-4, Bangalore and they relate to the assessment years 2009-10 to 2012-13.
2. None appeared on behalf of the assessee, even though the adjournment was granted on the last occasion on the specific request of the assessee. Hence, we proceed to dispose of the appeal ex-parte, without the presence of the assessee.
3. Since one of the issues urged in all these appeals are identical in nature, they were heard together and are being disposed of by this common order, for the sake of convenience.
4. We heard Ld. D.R. and perused the record. The assessee company is engaged in Airline business.
5. The common issue urged in all the four appeals relate to relief granted by Ld. CIT(A) in respect of disallowance of repairs & maintenance expenses claimed by the assessee. The A.O. took the view that the assessee has got enduring benefit by incurring the Repairs & Maintenance expenses and hence they are capital in nature. Accordingly, he took the view that the repairs expenses claimed by the assessee in all the four years needs to be disallowed. Since they were taken as capital in nature, the A.O. allowed depreciation thereon and accordingly disallowed only net amount. The details of disallowance made by the A.O. in all the years under consideration are tabulated below:
