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2008 (12) TMI 360 - ALLAHABAD HIGH COURTBusiness Expenditure- the assessee-company is engaged in the manufacturing and sale of writing instruments under the brand name of "Rotomac" and located at Kanpur. The payment was made to the director pertaining to the telephone, electricity, and travelling expenses, etc. He further submitted that as per section 17(2) of the Income-tax Act, it falls under the "perquisites" and the same is allowable expenditure, which may be considered in the hands of the beneficiary. However, the Assessing Officer has disallowed the said expenses for both the assessment years under consideration. The first appellate authority has disallowed the expenses pertaining to the electricity and telephone. However, the matter pertaining to the travelling expenses was restored to the Assessing Officer. In second appeal, the Tribunal by the impugned order has given the relief of rupees one lakh for each assessment year under consideration by mentioning that this amount has already been considered as perquisites in the hands of the director. He finally made request that the entire expenses may kindly be allowed by modifying both the orders of the Tribunal. Held that- going through the material available on record the house was partly used for purpose of business. The partial relief of Rs. 1 lakh given by the Tribunal for each assessment year was on estimate basis and needed no interference. Thus dismiss the appeal.
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