Depreciation on Car registered in Director’s name-Supreme Court dismisses SLP of ITD

Depreciation on Car registered in the name of Director- Supreme Court dismisses SLP of the Revenue against dismissal of the question of law

ABCAUS Case Law Citation:
ABCAUS 2800 (2019) (02) SC

The Hon’ble Supreme Court has dismissed the SLP of the Revenue against inter alia the issue of depreciation on Car registered in the name of the Director.

In the instant case, the Revenue was aggrieved by the decision of the Tribunal and filed a Tax Appeal in the Hon’ble High Court raising several grounds.

One of the substantial question of law was related to  the Tribunal allowing the depreciation u/s 32 on purchase of a Luxury Car despite the fact that though the car was registered in the name of the Director,

The case of the Revenue was that there was no evidence to show that the same was used wholly and exclusively for the purpose of business.

The Hon’ble High Court, while admitting the appeal on other questions, however dismissed the said question which was related to the claim of depreciation.

The Hon’ble High Court observed that in another case, under similar circumstances, it had ruled in favour of the assessee.

Aggrieved by the action of the Hon’ble High Court in dismissing the said question related the depreciation while admitting the appeal, the Revenue had filed a Special Leave Petition (SLP in the Hon’ble Supreme Court.

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