Ita/215/2013 Of M/S.appolo Tyres Ltd v. The Deputy Commissioner Of Income-Tax

IN THE HIGH COURT OF KERALA AT ERNAKULAMPRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMASFRIDAY, THE 30 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 LTD6TH FLOOR, CHERUPUSHPAM BUILDINGS, SHANMUGHAM ROAD, KOCHI-31. (PAN: AAACA 6990Q) BY ADVS.SRI.JOSEPH MARKOSE (SR.)SRI.V.ABRAHAM MARKOSSRI.ABRAHAM JOSEPH MARKOSSRI.BINU MATHEWSRI.TOM THOMAS KAKKUZHIYIL RESPONDENT/S: THE DEPUTY COMMISSIONER OF INCOME-TAXCIRCLE 1 (1) ERNAKULAM, KOCHI-682018. BY ADVS.SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES)SRI.P.K.R.MENONSR.COUNSEL GOITAXESSRI.JOSE JOSEPH, SC, FOR INCOME TAXSRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENTSRI.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: J U D G M E N T S.V. Bhatti, J. Heard learned Senior Counsel Mr. Joseph Markos andlearned Standing Counsel Mr. Christopher Abraham for parties.2. M/s.Apollo Tyres Ltd., Kochi/Assessee is theappellant. The Deputy Commissioner of Income Tax/Revenue isthe respondent. The subject appeal is at the instance ofAssessee from the order of Income Tax Appellate Tribunal (forshort ‘the Tribunal') Cochin Bench in ITA No.729/Coch/2008dated 08.02.2013. The controversies relate to the AssessmentYear 2005-06. The appeal deals with the questions ofdisallowance made by the Tribunal of the expenditure incurredby the assessee towards club expenses and disallowance of part I.T.A. No.215/2013 -3- of depreciation of Gurgaon building. 2.1The substantial questions read as follows: “1) Whether on the facts and in the circumstances of the casethe Tribunal is justified in law in sustaining the disallowance ofpart depreciation of Gurgaon building aggregating to21,03,979/- in relation to let out portion to Apollo InternationalLtd. 2) On the facts and in the circumstances of the case theTribunal is justified in law in holding that payments made toclubs on account of services and facilities can be allowed only ifcommercial expediency is proved even after recording afinding in the impugned order that entrance fees/subscriptionrepresents 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 ITANo.26/2013 are adopted while considering and disposing of thesubstantial questions framed in this appeal as well. I.T.A. No.215/2013 Hence, the questions are answered in favour of theRevenue and against the assessee. Appeal fails, dismissedaccordingly. No order as to costs. Sd/- S.V.BHATTIJUDGE Sd/- BECHU KURIAN THOMASJUDGE jjj APPENDIX OF ITA 215/2013 PETITIONER ANNEXURE ANNEXURE A1 TRUE COPY OF ASSESSMENT ORDER DATED 31.12.2007 OFTHE RESPONDENT. ANNEXURE A2 TRUE COPY OF APPELLATE ORDER DATED 26.3.2008 OF THE COMMISSIONER OF INCOME TAX (APPEALS) II, KOCHI. ANNEXURE A3CERTIFIED COPY OF ORDER DATED 8.2.2013 OF THE INCOME TAX APPELLATE TRIBUNAL, KOCHI BENCH IN I.T.A. NO. 729/COCH/2008.