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2021 (12) TMI 694 - ITAT BANGALOREAddition u/s 41(1) - as assessee has not written off the outstanding liability in the books of account and are still in existence. Therefore, it was contended that the assessee has acknowledged his liabilities as per the books of account - HELD THAT:- In the instant case, admittedly, it is loan creditors and not a trading liability. So, the assessee has not obtained allowance or deduction in computing the profits and gains of business or profession in respect of assessment of any year. Therefore, the first condition enumerated u/s 41(1) of the I.T.Act does not have application to the facts of the instant case. Hence, the addition made by the A.O. and sustained by the CIT(A) is deleted. - Decided in favour of assessee. Disallowance of depreciation on motor car and revolver - Disallowance of interest on car loan - business v/s personal expenses - claims made by the assessee was disallowed by the A.O. by holding that these are personal in nature - HELD THAT:- AR during the course of hearing had fairly submitted that the assessee did not place necessary evidences for claiming depreciation and interest before the Income Tax Authorities. Even before the ITAT, no evidence are placed on record for claiming deduction / disallowance. Hence, the claim of deduction of depreciation and interest is sustained. - Decided against assessee.
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