Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (3) TMI 1653 - AT - Income TaxAdhoc disallowance of Telephone and car expenses - expenses incurred for personal use of the assessee - Held that:- We find merit in the contention of assessee that no disallowance on account of personal use of car and telephone expenses can be made in the case of company assesses that too on an adhoc basis. The reliance placed by the assessee on the case of CIT Vs. Dinesh Mills Ltd. (2005 (1) TMI 699 - GUJARAT HIGH COURT) wherein it has been categorically held that no personal use of car or telephone expenses can be attributed to company assessee and, therefore, cannot form the basis for disallowing the expenses. This proposition has been reiterated in a number of other decisions also as pointed out by the Ld. Counsel for the assessee. DR has not brought to our notice any contrary decision in this regard. In view of the above, we delete the disallowance made of 1/6th of telephone and car expenses incurred by the assessee amounting to ₹ 46,514/- & ₹ 1,91,275/- respectively.
|