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2012 (12) TMI 841 - AT - Income TaxDisallowance of motor car expenses – Depreciation on motor car – Expense in relation to personal usage of car – Held that:- Since assessee is not maintaining any log book and, therefore, there is no proof that the car has been used only for the purpose of business. The estimate disallowance of such expenses @5% is justified. In favour of revenue Estimate disallowance out of telephone expenses – Mobile expense for personal usage – Held that:- Personal usages of telephone/mobile is quite common and cannot be ruled out and in the absence of full details of call records etc., it is not established that these have been used only for the purpose of business. Therefore, the estimated disallowance is justified. In favour of revenue Estimate disallowance of expenses - Business promotion expenses - Conveyance expenses - Miscellaneous expenses - Office expenses - AO had disallowed 20% of such expenses on estimate which has been reduced by the CIT(A) to 10% - Held that:- The case of the assessee is that the nature of many of the expenses under these heads is such that no proper vouchers are possible. We agree that it may not be possible to have proper evidence in respect of conveyance and miscellaneous expenses etc, but since the expenses are not supported by the proper evidence, the estimated disallowance of such expenses is justified. The estimate disallowance of Rs. 50,000/- out of these expenses will meet the ends of justice. Partly allowed in favour of assessee Nature of income - Sale and purchase of shares – Investment activity or trading activity - Capital gain or business income – Held that:- All delivery based shares cannot be treated as an investment activity. Some shares have also been sold after a short duration of holding. Thus most of the transactions are speculative in nature. The share transactions from which the assessee has shown short term capital gain were of the nature of trading activity of the assessee. In favour of assessee
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