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2014 (7) TMI 7 - AT - Income TaxContract charges paid Charges paid to father for rendering services Held that:- CIT(A) was rightly of the view that there was failure on the part of the assessee to prove that there was any business consideration for making payment of contract charges to his father - services agreed to be rendered by his father to the assessee are very general in nature and there is no evidence whatsoever brought on record to show that any of the said services were actually rendered by the father of the assessee for the purpose of assessees business - the onus is on the assessee and the assessee has failed to discharge the same by producing any documentary evidence to support his claim for the expenditure of Rs. 20 lacs on contract charges thus, there was no infirmity in the order of the CIT(A) confirming the disallowance made by the AO Decided against Assessee. Rate of depreciation on BMW car Held that:- The vital fact has been overlooked that the car rental income of Rs. 3,16,700/- received during the year was duly offered by the assessee to tax in his return of income - there was no justifiable reason to doubt the claim that the BMW car was put to commercial use - the assessee was entitled to full depreciation at the specified rate of BMW motor car and the disallowance made by the AO on account of depreciation to the extent of 50% was not sustainable thus, the order of the CIT(A) is set aside Decided in favour of Assessee. Depreciation on Skoda motor car Held that:- The basis given by the AO to disallow the entire depreciation claimed by the assessee on Skoda car was untenable inasmuch as if at all no record was maintained by the assesse to show that the Skoda car was used for the purpose of his business or profession, the disallowance on account of personal use of the car could have been made to some extent on estimated basis but not the entire depreciation merely because the assessee was maintaining a fleet of cars which was kept ready for use for the purpose of his business or profession - a disallowance of 25% of the total depreciation claimed by the assessee on Skoda car on personal use is to be allowed the order of the CIT(A) is modified Decided partly in favour of Assessee. Expenses on motor car and fuel expenses Held that:- CIT(A) rightly upheld 75% for personal use, and the AO is directed to restrict the disallowance at 75% to 25% - Decided partly in favour of Assessee.
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