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2018 (12) TMI 683 - AT - Income TaxAdditions on account of expenditure on speed-boat owned by the assessee - Held that:- The appellate order for AY 2009-10 records a clear-cut finding that the assessee had been using speed-boat for travelling from Mumbai to Alibaug for his professional activities like acting, practice, health, maintenance, story telling etc. and hence, business asset has been utilized by assessee for commutation for professional work and therefore, the expenditure against the same was allowable to the assessee like any other travelling mode like motor-car etc. Another important fact to note is that the speed-boat forms part of the 15% block of Fixed Assets which is evident from depreciation chart as placed on record and therefore, constitute business / professional asset for the assessee. As further noted that the assessee has claimed impugned depreciation on opening written down value of the speed-boat which is being carried forward from earlier AY and already merged under 15% block of fixed assets. Further, the assessee has suo-moto disallowed 25% of the expenditure on estimated basis to account for personal element / usage. Therefore, considering the totality of facts, impugned additions could not be sustained. Reversing the stand of lower authorities, we allow the appeal.
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