Case Law Details
Shivam Water Treaters Pvt. Ltd. Vs ACIT (ITAT Ahmedabad)
The 1st issue that arises for our consideration whether the assessee is eligible to claim the depreciation on the purchase of cars in the manner as provided under section 32 of the Act. To claim the depreciation under section 32 of the Act, the following conditions needs to be specified/satisfied.
(a) Assets should be owned wholly or partially and
(b) Used for the business purpose
20.1 From the above, the 1st condition arises for adjudication whether the assessee is the owner of the cars in dispute. The assessee has shown purchase of 5 cars in in the year under consideration. Out of the 5 cars, 2 cars namely Audi-A4 and BMW, there is no dispute as far as the ownership of the cars is concerned. However, the AO has disallowed the depreciation claimed by the assessee with respect to the remaining 3 cars namely Audi-A6, Sonata, Innova on the reasoning that the assessee has failed to furnish the ownership of the cars in dispute which is one of the prerequisite to claim depreciation. Admittedly, the assessee has furnished the purchase invoices and RC book which are placed on pages 145 to 158 of the paper book. However on perusal of the invoice/ RC book and the copy of the ledger furnished by the assessee, we find certain discrepancies as detailed in following paragraph.
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