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2019 (8) TMI 1205 - AT - Income TaxDisallowance of interest u/s 57(iii) - A.O. alleged that the assessee could not explain to his satisfaction that the interest paid on the loans was having any nexus with interest income earned u/s 57 - business expenditure - HELD THAT:- Referring to claim of the assessee is that interest bearing funds were utilized for the business purposes and the interest paid in similar circumstances was allowed in the earlier year i.e 2012- 13 by the ITAT in assessee’s own case [2019 (5) TMI 274 - ITAT CHANDIGARH] , copy of the said order was furnished which is placed on the record. However the said order was not available either to the A.O. or to the Ld. CIT(A), I therefore deem it appropriate to set aside this limited issue to the file of the A.O. to be adjudicated by keeping in view the observations given in the aforesaid order, in accordance with law. - Appeal of the Assessee allowed for statistical purposes. Disallowance of car expenses, depreciation, telephone and travelling expenses - assessee himself had disallowed a sum partially out of the above said expenses - HELD THAT:- In such type of cases the use of Telephone and Car for personal purposes cannot be ruled out, however the disallowance made by the A.O. and sustained by the Ld.CIT(A) @ 1/5th of the expenses appears to be excessive, I therefore to meet the ends of justice, deem it appropriate to restrict the disallowance to 1/10th of the expenses incurred by the assessee on Telephone, Car and depreciation instead of 1/5th worked out by the A.O. while restricting the above disallowance the A.O. should also give the benefit of the disallowance already made by the assessee
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