Case Law Details
Delhi Call Centre Private Limited Vs DCIT (ITAT Delhi)
The only objection to the allowance of depreciation by the Lower Authorities is that the assessee could not produce copy of purchase invoice of the vehicle. It is undisputed that the Department has allowed interest on vehicle loan as well as has also allowed the expenditure towards car running. Thus, in fact, it is accepted by the Department that the assessee has a vehicle which is used for the business purposes. Although, the assessee could have made efforts to obtain a copy of the purchase invoice from the hypothecating bank and produced it before the Lower Authorities, all the same, it is our considered opinion that the assessee should not be penalized for his failure to produce the purchase invoice, specially, when the Department has in principle accepted the assessee’s claim of interest on car loan as well as claim of Car running expenditure. Therefore, in view of the facts of the case, we delete this disallowance.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal is preferred by the assessee against order dated 28.02.2019 passed by the Learned Commissioner of Income Tax (Appeals)-34, New Delhi {CIT(A)} for Assessment Year 2012-13.
2.0 The brief facts of the case are that the assessee company was engaged in the business of running a Call Center in earlier Assessment Years, although the assessee was no longer in operation during the year under consideration. The return of income was filed declaring a loss of Rs.47,44,408/-. Subsequently, the return was revised declaring income at Rs. NIL. The case was selected for scrutiny and subsequently, the assessment was completed at an income of Rs.3,17,71,620/- after allowing set off of brought forward losses amounting to Rs.1,03,64,510/- and after making the following additions and disallowances:
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