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2014 (1) TMI 1436 - ITAT AHMEDABADDisallowance made on motor car expenses - Depreciation of car – Held that:- The funds of the Assessee were used for the purpose of acquisition of motor car and the motor car was used for the purpose of business – Assessee did not produce the copy of the annual accounts to substantiate its claim that the funds of the Assessee has been used for acquisition of motor car - the Assessee has neither brought any material on record to prove that the asset was used by the Assessee for the purpose of business and the Assessee was exercising its domain, possession and ownership over the asset to the exclusion of all others - in the interest of justice and fair play one more opportunity be granted to the Assessee to substantiate his claim of expenses before the A.O. to his satisfaction – thus, the matter remitted back to the AO for fresh adjudication – Decided in favour of Assessee. Re-computation of disallowance of Interest expenses – Interest free advances – Held that:- There was no details are available with respect to the interest paid by the Assessee - there is no finding of AO or CIT(A) that the Assessee has not paid any interest to Vijay Stationers - this factual aspect needs to be verified by A.O –the matter remitted back to the AO for verification. The assessee has not placed any material on record to substantiate its claim that the Assessee was having sufficient interest free advance which has been utilized for the purpose of advancing the aforesaid amounts – the CIT(A) has given a finding that Assessee’s total capital and reserves of Rs. 9.25 crore were invested in fixed assets and inventory exceeding Rs. 26 crore and therefore the same was not available for providing interest free advances - the Assessee can be granted one more opportunity to substantiate its claim of use of interest free funds for making advances – the matter remitted back to the AO for fresh adjudication – Decided partly in favour of Assessee.
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