M/S.Appolo Tyres Ltd vs The Deputy Commissioner Of ...
2021 Latest Caselaw 15800 Ker

            IN THE HIGH COURT OF KERALA AT ERNAKULAM
                              PRESENT
                THE HONOURABLE MR.JUSTICE S.V.BHATTI
                                  &
        THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS
        FRIDAY, THE 30TH DAY OF JULY 2021 / 8TH SRAVANA, 1943
                         ITA NO. 215 OF 2013
 AGAINST THE ORDER IN ITA 729/2008 OF I.T.A.TRIBUNAL,COCHIN BENCH,
                             ERNAKULAM
APPELLANT/S:

          M/S.APPOLO TYRES LTD
          6TH FLOOR, CHERUPUSHPAM BUILDINGS, SHANMUGHAM ROAD,
          KOCHI-31. (PAN: AAACA 6990Q)

          BY ADVS.
          SRI.JOSEPH MARKOSE (SR.)
          SRI.V.ABRAHAM MARKOS
          SRI.ABRAHAM JOSEPH MARKOS
          SRI.BINU MATHEW
          SRI.TOM THOMAS KAKKUZHIYIL



RESPONDENT/S:

          THE DEPUTY COMMISSIONER OF INCOME-TAX
          CIRCLE 1 (1) ERNAKULAM, KOCHI-682018.

          BY ADVS.
          SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES)
          SRI.P.K.R.MENONSR.COUNSEL GOITAXES
          SRI.JOSE JOSEPH, SC, FOR INCOME TAX
          SRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT
          SRI.K.M.V.PANDALAI, INCOME TAX DEPARTMENT




      THIS INCOME TAX APPEAL HAVING COME UP FOR HEARING ON 30.07.2021,
THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 I.T.A. No.215/2013
                                  -2-




                         JUDGMENT

S.V. Bhatti, J.

Heard learned Senior Counsel Mr. Joseph Markos and

learned Standing Counsel Mr. Christopher Abraham for parties.

2. M/s.Apollo Tyres Ltd., Kochi/Assessee is the

appellant. The Deputy Commissioner of Income Tax/Revenue is

the respondent. The subject appeal is at the instance of

Assessee from the order of Income Tax Appellate Tribunal (for

short 'the Tribunal') Cochin Bench in ITA No.729/Coch/2008

dated 08.02.2013. The controversies relate to the Assessment

Year 2005-06. The appeal deals with the questions of

disallowance made by the Tribunal of the expenditure incurred

by the assessee towards club expenses and disallowance of part I.T.A. No.215/2013

of depreciation of Gurgaon building.

2.1 The substantial questions read as follows:

"1) Whether on the facts and in the circumstances of the case the Tribunal is justified in law in sustaining the disallowance of part depreciation of Gurgaon building aggregating to 21,03,979/- in relation to let out portion to Apollo International Ltd.

2) On the facts and in the circumstances of the case the Tribunal is justified in law in holding that payments made to clubs on account of services and facilities can be allowed only if commercial expediency is proved even after recording a finding in the impugned order that entrance fees/subscription represents allowable business expenditure."

3. The assessee, raising similar questions of law, filed

ITA No.26/2013 for the Assessment Year 2003-04. By a separate

order the appeal has been dismissed. The reasons stated in ITA

No.26/2013 are adopted while considering and disposing of the

substantial questions framed in this appeal as well. I.T.A. No.215/2013

Hence, the questions are answered in favour of the

Revenue and against the assessee. Appeal fails, dismissed

accordingly. No order as to costs.

Sd/-

S.V.BHATTI JUDGE

Sd/-

BECHU KURIAN THOMAS JUDGE

jjj I.T.A. No.215/2013

APPENDIX OF ITA 215/2013

PETITIONER ANNEXURE

ANNEXURE A1 TRUE COPY OF ASSESSMENT ORDER DATED 31.12.2007 OF THE RESPONDENT.

ANNEXURE A2 TRUE COPY OF APPELLATE ORDER DATED 26.3.2008 OF THE COMMISSIONER OF INCOME TAX (APPEALS) II, KOCHI.

ANNEXURE A3 CERTIFIED COPY OF ORDER DATED 8.2.2013 OF THE INCOME TAX APPELLATE TRIBUNAL, KOCHI BENCH IN I.T.A. NO. 729/COCH/2008.