w w w . L a w y e r S e r v i c e s . i n



Urmila Enterprises (P.) Ltd. v/s Assistant Commissioner of Income-tax


Company & Directors' Information:- URMILA AND COMPANY LIMITED [Active] CIN = U99999MH1972PLC016089

Company & Directors' Information:- URMILA ENTERPRISES PRIVATE LIMITED [Active] CIN = U22200DL2014PTC266058

Company & Directors' Information:- T. A. ENTERPRISES PRIVATE LIMITED [Active] CIN = U52100BR2013PTC021701

    IT Appeal No. 689 (Mds.) of 2014

    Decided On, 05 February 2015

    At, Income Tax Appellate Tribunal Chennai

    By, THE HONOURABLE MR. B.R. BASKARAN
    By, ACCOUNTANT MEMBER & THE HONOURABLE MR. VIKAS AWASTHY
    By, JUDICIAL MEMBER

    For the Appellant: S. Sridhar, Advocate. For the Respondent: P. Radhakrishnan, Advocate.



Judgment Text

R. Baskaran, Accountant Member

1. The assessee has filed this appeal challenging the order of the learned Commissioner of Income-tax (Appeals)-III, Chennai, passed for the assessment year 2006-07, wherein the learned Commissioner of Income-tax (Appeals) has confirmed disallowance of a part of depreciation claimed by the assessee on vehicles.

2. We heard the parties and perused the record. The assessee-company is engaged in the business of undertaking contract work for road construction and also trading in Ingersoll Rand products, etc. The Assessing Officer noticed that the assessee has claimed depreciation on vehicles at the rate of 30 per cent. The higher rate of depreciation of 30 per cent. is applicable for vehicles running on hire. The Assessing Officer took the view that the assessee has used the vehicles in the business of road construction and trading which activities are the main business activities of the assessee and hence, the assessee is not entitled for higher rate of depreciation. Accordingly, she reopened the assessment by issuing notice under section 148 and disallowed the excess claim of depreciation. The learned Commissioner of Income-tax (Appeals) also confirmed the said addition.

3. At the time of hearing, learned counsel appearing for the assessee invited our attention to the profit and loss account and submitted that the assessee has actually hired out the vehicles and has earned an income of Rs. 7.47 crores as hire/rental receipts. Learned counsel submitted that the fact that the assessee has received hiring income clearly shows that the vehicles were used on hire. Accordingly, he contended that the tax authorities are not justified in allowing the depreciation at the rate of 15 per cent. as against 30 per cent. claimed by the assessee.

4. On the contrary, the learned Departmental representative strongly defended the order passed by the learned Commissioner of Income-tax (Appeals).

5. Having regard to the rival contentions, we are of the view that there is a merit in the contention of the assessee. A perusal of the profit and loss account would show that the sales and other income disclosed by the assessee for the year under consideration was Rs. 8.81 crores, of which the rental receipts alone constitute Rs. 7.47 crores, meaning thereby the assessee has earned income mainly from hiring of vehicle. We notice that the Assessing Officer has gone by the declaration made in the return of income with regard to nature of business activities. Accordingly, the Assessing Officer has failed to examine the actual activities carried on by the assessee during the year under consideration. We notice that the learned Commissioner of Income-tax (Appeals) has confirmed the addition on the reasoning that the assessee has failed to furnish evidence in the form of hiring contracts. At the time of hearing, learned counsel submitted that the fact of hiring of vehicles is evidenced by the fact of receipt of hiring income and the tax authorities have failed to take notice of the same. We agree with the said contention of learned counsel. Since the financial statements clearly prove that the assessee has received rental receipts on hiring of vehicles, we are of the view that the assessee is entitled to higher rate of depreciation

Please Login To View The Full Judgment!

at the rate of 30 per cent. Accordingly, we set aside the order of the learned Commissioner of Income-tax (Appeals) on this issue and restore the issue to the file of the Assessing Officer with a direction to allow depreciation on vehicles at the rate of 30 per cent. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes.
O R







Judgements of Similar Parties

27-07-2020 Manish Sharma & Another Versus Urmila Arora High Court of Delhi
21-07-2020 Sanyog Enterprises Pvt. Ltd. Versus Union Territory of J&K & Others High Court of Jammu and Kashmir
30-06-2020 Union Bank of India, Through Shri R. Rajendra Prasad, Branch Manager, Raichur Versus M/s. Tirumala Enterprises, Raichur National Consumer Disputes Redressal Commission NCDRC
15-06-2020 Integrated Enterprises India Ltd. & Another Versus Ippili Krishna Surekha Rao & Another National Consumer Disputes Redressal Commission NCDRC
12-05-2020 Sri Rama Enterprises Versus State Bank of India High Court of Andhra Pradesh
08-05-2020 AVR Enterprises Versus Union of India High Court of Delhi
10-03-2020 M/s. Aarthi Enterprises, Rep. by its Partner Mrs.G. Mythili V/S Southern Railways, Rep. by the General Manager, Chennai & Others High Court of Judicature at Madras
05-03-2020 Commissioner of Income Tax, Udaipur Versus M/s. Chetak Enterprises Private Limited Supreme Court of India
03-03-2020 M/s. Deluxe Enterprises, H.P. Versus Oriental Insurance Company Ltd., Punjab National Consumer Disputes Redressal Commission NCDRC
02-03-2020 M/s. Nitish Enterprises, Stockist & Commission Agents, Vaikam & Others Versus Karnataka Soaps & Detergents Ltd, having its Registered office at Bangalore, Regional cum Branch office at Chennai, Rep. by its Authorized Representative, S. Muthaian High Court of Judicature at Madras
28-02-2020 M/s. S.S. Enterprises, Rep. by its Proprietrix S. Sumathi, Through her power agent R. Sivaramakrishnan Versus The District Collector, Erode High Court of Judicature at Madras
27-02-2020 Prosound Products Partnership Firm, Rep. by its Partner Pradeep Ahuja & Another Versus John Enterprises, Chennai High Court of Judicature at Madras
27-02-2020 M/s. Hansa Enterprises, Rep by its Proprietrix Pinky Jain Versus The Principal Commissioner & Commissioner of Commercial Taxes & Others High Court of Judicature at Madras
26-02-2020 M/s. NUDPL Enterprises Pvt. Ltd., Bangalore Versus Saiprasad Natarajan & Another National Consumer Disputes Redressal Commission NCDRC
25-02-2020 M/s. Zee Telefilms Ltd. (Now Known as Zee Entertainment Enterprises Ltd.) Versus Suresh Productions & Others Supreme Court of India
21-02-2020 BWCI Pension Trustees Limited Versus Estra Enterprises Private Ltd. High Court of Judicature at Madras
21-02-2020 Batliboi Renewable Energy Solutions Pvt. Ltd., (Formerly known as Batliboi EnXco Pvt. Ltd.,) Represented by Rajiv, Senior Manager (Accounts) Versus M/s. Sri Vinayaga Enterprises, Represented by its Proprietor R. Ganesan High Court of Judicature at Madras
21-02-2020 CP Cell, Directorate General Ordnance Service, Informant Master General of Ordnance Service, CP Cell/OS Dte, New Delhi V/S M/s AVR Enterprises, Kanpur & Another Competition Commission of India
18-02-2020 Antikeros Shipping Corporation Versus Adani Enterprises Limited High Court of Judicature at Bombay
18-02-2020 Bharat Sanchar Nigam Limited A Government of India Enterprises, Delhi & Others Versus Gopal Prasad Jaiswal High Court of Chhattisgarh
14-02-2020 M/s. Kumar Enterprises A Registerd Partnership Firm, Represented by its Manager R. Shivakumar Versus Union of India, Represented by its Secretary Ministry of Coal & Mines Department of Mines Shastri Bhavan, New Delhi & Others High Court of Karnataka
14-02-2020 The Superintending Engineer, General Construction, TANTRANSCO Ltd., Tatabad, Coimbatore & Another Versus Micro Small Enterprises Facilitation Council and Director of Industries and Commerce, Represented by its Chairman, Guindy & Others High Court of Judicature at Madras
13-02-2020 Dr. Monidipa Ghosh Versus M/s. Rosni Enterprises Rep. by sole prop., Prabuddha Bhattacharyya & Others West Bengal State Consumer Disputes Redressal Commission Kolkata
11-02-2020 M/s. Anusha Enterprises Rep.by its Managing Partner C.K.Nafrasimha Rao, Chennai Versus Government of India, Department of Atomic Energy General Services Organisation Kalpakkam & Another High Court of Judicature at Madras
10-02-2020 John Enterprises, Madurai V/S Prosound Products, Rep. by its Partner Pradeep Ahuja, Mumbai & Another High Court of Judicature at Madras
07-02-2020 Syndicate Bank V/S Alaknanda Enterprises and Others. Debts Recovery Tribunal Delhi
04-02-2020 M/s. Siddhi Vinayak Enterprises represented by its Proprietor R. Devika Versus The Senior Divisional Commercial Manager Southern Railway Divisional Railway Manager's Office Commercial Branch, Park Town Chennai High Court of Judicature at Madras
03-02-2020 Bank of Baroda V/S M.S. Enterprises and Others. Debts Recovery Tribunal Aurangabad
31-01-2020 Amazon Seller Services Pvt. Ltd. & Others Versus Amway India Enterprises Pvt. Ltd. & Others High Court of Delhi
30-01-2020 Urmila Devi & Others Versus Branch Manager, National Insurance Company Ltd. & Another Supreme Court of India
29-01-2020 Urmila Shah & Others Versus Presiding officer, Industrial Tribunal & Others High Court of Orissa
24-01-2020 Sri Narasu's Coffee Company Pvt. Ltd., Rep. by its Managing Director, P. Sivanantham, Salem Versus Narasu's Saarathy Enterprises Pvt. Ltd., Rep. by its Managing Director, M.V. Balasubramanian, Salem High Court of Judicature at Madras
21-01-2020 M/s. Harinath Enterprises, rep. by its Proprietor, G. Kaspa Reddy & Others Versus The State of Telangana, rep. by its Prl Secretary, Municipal Administration Department, BRKR Bhavan, Hyderabad & Others High Court of for the State of Telangana
14-01-2020 M/s. Allied Enterprises Versus Rekha Basu & Others High Court of Judicature at Calcutta
10-01-2020 M/s.Zee Entertainment Enterprises Limited, Chennai Versus Nirmal Kumar Maheswari Chennai & Others High Court of Judicature at Madras
10-01-2020 M/s. J.P. Electrical Enterprises Chandrapur Prop. Priyavanda & Others Versus The Maharashtra State Electricity Distribution Co. Ltd. & Another In the High Court of Bombay at Nagpur
10-01-2020 United India Insurance Co. Ltd., New Delhi Versus Urmila Agarwal & Others National Consumer Disputes Redressal Commission NCDRC
09-01-2020 Jaaacsons Enterprises V/S C.C.E. & S.T.-Mangalore Customs Excise Service Tax Appellate Tribunal Regional Bench, Bangalore
02-01-2020 Allahabad Bank V/S Om Sai Enterprises and Others. Debts Recovery Tribunal Patna
02-01-2020 M/s. QuestNet Enterprises India Pvt. Ltd., Represented by Pushpam Appala Naidu & Another Versus The Inspector of Police, Crime Branch CID, Egmore, Chennai & Another High Court of Judicature at Madras
20-12-2019 Global United Shipping India Private Limited, (formerly known as Jalhansa Enterprises Pvt. Ltd.), Represented by its Director, Prem Kumar Menon, Chennai Versus Traffic Manager, Chennai Port Trust, Chennai High Court of Judicature at Madras
18-12-2019 M/s. MCP Enterprises, Thrissur, Represented by Its' Executive Partner, M.C. Mohammed Kutty & Others Versus State of Kerala, Represented by Secretary, Taxes Department, Secretariat, Thiruvananthapuram & Others High Court of Kerala
16-12-2019 Urmila Devi & Others Versus Superintendent of Police & Others High Court of Jharkhand
16-12-2019 M/s. Taranga Technologies, Andhra Pradesh Versus M/s. Neels Enterprises Pvt. Ltd., Represented by its Managing Director, Chennai High Court of Judicature at Madras
06-12-2019 P.T. Joseph, Proprietor, Cheryl Enterprises, Elamakkara, Ernakulam Versus Kabeer Husain Minanna & Others High Court of Kerala
04-12-2019 M/s. S.V. Enterprises Represented by Proprietor M. Srinivas Naidu Versus V. Tulasiram High Court of Karnataka
03-12-2019 M/s. G.S. Enterprises & Another Versus Andhra Pradesh State Financial Corporation & Another High Court of for the State of Telangana
02-12-2019 Union Bank of India Versus Anjali Enterprises & Others Debts Recovery Appellate Tribunal at Allahabad
15-11-2019 M/s. Devashi Enterprises, Rep. by its Proprietor Vasanth Kumar Versus The Joint Commissioner (CT), Enforcement I, Chennai & Others High Court of Judicature at Madras
12-11-2019 M/s. Indu Projects Limited, rep. by its Chief Operating Officer, B.V. Bhaskar Reddy Versus Telangana Micro & Small Enterprises Facilitation Council, rep. by its Chairman, Commissionerate of Industries, Hyderabad & Another High Court of for the State of Telangana
07-11-2019 The Regional Provident Fund Commissioner, Employees Provident Funds Organisation, Chennai Versus Deccan Enterprises, Chennai & Another High Court of Judicature at Madras
30-10-2019 Karma Enterprises, Kozhikode, Represented by Its Managing Partner K.M. Sasidharan Versus State of Kerala, Represented by Deputy Commissioner (Law, Commercial Taxes), Ernakulam High Court of Kerala
24-10-2019 Dr. Murali Krishnan, Proprietor, Sri Anjaneya Enterprises, Chennai Versus M/s. Glider Pharma Distributors Pvt. Ltd. Presently known as National Medicines Pvt. Ltd., Rep. by its Managing Director, Naresh Kumar, Chennai & Others High Court of Judicature at Madras
24-10-2019 Urmila Singh Versus Swasti Diagnostic Centre West Bengal State Consumer Disputes Redressal Commission Kolkata
22-10-2019 M/s. Giriraj Enterprises Versus State of Karnataka High Court of Karnataka
22-10-2019 Konkan Irrigation Development Corporation, Kopri Colony, Thane (E) & Another Versus M/s. F.A. Enterprises & Others High Court of Judicature at Bombay
18-10-2019 M/s. Shree Senthil Enterprises, Registered Partnership Firm, by its Partner, Chitra Parimala, Coimbatore Versus Employees State Insurance Corporation, Sub-Regional Office, Coimbatore & Another High Court of Judicature at Madras
18-10-2019 M/s. Nic Arts, Chennai Versus M/s. Zee Entertainment Enterprises Ltd, Mumbai High Court of Judicature at Madras
17-10-2019 Himagiri Enterprises Private Limited Versus The State of Telangana High Court of for the State of Telangana
17-10-2019 Adani Enterprises Limited & Another Versus Union of India, through Secretary Ministry of Home Affairs & Others High Court of Judicature at Bombay
11-10-2019 M/s. Shubham Enterprises Versus K. Srinivas Rao & Others High Court of for the State of Telangana
10-10-2019 Balaji Enterprises, Through Proprietor, Shri K.K. Tomar Versus Oriental Insurance Co. Ltd., Chandigarh National Consumer Disputes Redressal Commission NCDRC
04-10-2019 Ambalal Sarabhai Enterprises Ltd. Versus K.S. Infraspace LLP & Another Supreme Court of India
27-09-2019 The Management of Piramal Enterprises Ltd., Chennai Versus Assistant Commissioner of Labour, (Controlling Authority for the Payment of Gratuity Act), Chennai & Another High Court of Judicature at Madras
19-09-2019 Suprava Chandra & Others Versus Urmila Mohanty & Others High Court of Orissa
04-09-2019 Swastika Enterprises, Represented by Its Proprietor Mohanlal Gupta & Another Versus State of Kerala, Represented by Public Prosecutor, High Court of Kerala, Ernakulam & Another High Court of Kerala
03-09-2019 Jiten Chandra Talukdar Versus Union of India, Represented by the Secretary Ministry of Micro & Small Medium Enterprises (MSME), New Delhi & Others Central Administrative Tribunal Guwahati Bench Guwahati
19-08-2019 Pr. Commissioner of Income Tax-7, Mumbai V/S Piramal Enterprises Ltd High Court of Judicature at Bombay
14-08-2019 High Ground Enterprises Ltd. Versus Union of India Through the Secretary, Ministry of Law and Justice, Department of Legal Affairs, Branch Secretariat & Another High Court of Judicature at Bombay
30-07-2019 Vaishali Enterprises, Vaishali & Others Versus The Indian Railway, New Delhi & Others High Court of Judicature at Patna
25-07-2019 Compack Enterprises India (P) Ltd. Versus Beant Singh High Court of Delhi
16-07-2019 The Branch Manager, Kerala State Financial Enterprises Ltd, Chinnakkada Branch, Kollam District Versus S. Jeni Devi Kerala State Consumer Disputes Redressal Commission Thiruvananthapuram
12-07-2019 L.G.R. Enterprises, Represented by its Propreitrix Sindu @ Lakshmi & Others Versus P. Anbazhagan High Court of Judicature at Madras
05-07-2019 Anil Enterprises & Another Versus Akash Pateriya Chhatisgarh State Consumer Disputes Redressal Commission Raipur
03-07-2019 Bajaj Alliance General Insurance Company Ltd. Versus Gajanan Pankar Enterprises & Another Goa State Consumer Disputes Redressal Commission Panaji
21-06-2019 M/s. Sunbeam Enterprises & Others Versus The Municipal Corporation of Greater Mumbai & Others High Court of Judicature at Bombay
03-06-2019 M/s. Galaxy Enterprises Versus State of Maharashtra & Others High Court of Judicature at Bombay
31-05-2019 M/s. Gopalan Enterprises, A Firm Represented by its Managing Partner C. Gopalan Versus The Deputy Commissioner of Stamps, Bangalore & Others High Court of Karnataka
31-05-2019 Shabnam Dhillon Versus Zee Entertainment Enterprises Ltd. & Others High Court of Delhi
30-05-2019 Govind Enterprises Versus State of U.P. & Others High Court of Judicature at Allahabad
24-05-2019 Samsung India Electronics Private Limited Versus MGR Enterprises & Others High Court of Delhi
24-05-2019 The Union of India, Represented by General Manager & Others Versus M/s. Mineral Enterprises Pvt. Ltd., Represented by its Head Logistics, Srinivas Murthy High Court of Karnataka
10-05-2019 Ajay Enterprises Pvt. Ltd. & Others Versus Shobha Arora & Another National Consumer Disputes Redressal Commission NCDRC
10-05-2019 M/s. Navdhaan Enterprises, Chennai Versus Union of India, Chennai & Others High Court of Judicature at Madras
10-05-2019 Sanjay Singh Thakur & Others Versus Urmila Thakur High Court of Madhya Pradesh
01-05-2019 M/s New India Assurance Co. Ltd. & Another Versus M/s. Luxra Enterprises Pvt. Ltd. & Another Supreme Court of India
18-04-2019 Siddhivinayak Enterprises & Another Versus Union of India & Others High Court of Judicature at Bombay
15-04-2019 Dipali Enterprises, Nilanga Versus Sanjay In the High Court of Bombay at Aurangabad
10-04-2019 The Superintendent Regulated Market Committee Panruti Versus Pioneer Cashews Enterprises Rep. by its Proprietor Sivasubramanian & Another High Court of Judicature at Madras
04-04-2019 M/s. Apollo Hospitals Enterprises Limited, Represented by its Manager – Legal Versus State of Tamil Nadu, Rep. by the Principal Secretary to the Government (Public Department) & Others High Court of Judicature at Madras
22-03-2019 Adani Enterprises Limited Versus Antikeros Shipping Corporation High Court of Judicature at Bombay
18-03-2019 Mahalingam Exports, Vi. Ka. Industrial Estate, Guindy, Rep. by its Proprietor P. Mahalingam Versus The Govt. of Tamil Nadu, Rep. by Secretary, Department of Micro Small & Medium Enterprises, Secretariat, Chennai & Another High Court of Judicature at Madras
18-03-2019 M/s. Ruchi Enterprises & Others Versus M/s. Fullerton India Credit Company Ltd. High Court of Delhi
18-03-2019 Urmila Versus Sushma & Others High Court of Delhi
08-03-2019 M/s. Swathi Enterprises Versus The Deputy Commissioner of Income Tax High Court of Judicature at Madras
05-03-2019 Oricon Enterprises Ltd Versus New India Assurance Co. Ltd National Consumer Disputes Redressal Commission NCDRC
05-03-2019 Chowdeshwari Enterprises, Rajarajeshwarinagar, Bangalore & Others Versus State of Karnataka & Others High Court of Karnataka
26-02-2019 M/s. Omega Enterprises, Rep. by its Sole Proprietor Ramiah, Mumbai Versus Ministry of Civil Aviation, Rep. by its Secretary, New Delhi & Others High Court of Judicature at Madras
25-02-2019 Mahaguj Collieries Limited Versus Adani Enterprises Limited High Court of Judicature at Bombay
21-02-2019 M.K. Enterprises Through its Proprietor Moin Khan & Others Versus Municipal Corporation of Greater Mumbai & Others High Court of Judicature at Bombay