Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (10) TMI 184 - AT - Income TaxDisallowance of interest expenditure u/s 40A(2)(b) - HELD THAT:- As could be seen in course of assessment proceedings the assessee has furnished certain details. However, it could not furnish the log book to show the usage of the motorcar. Similarly, the assessee could not bring sufficient material on record to show that the telephone was not used for personal purpose. In such circumstances, part disallowance out of the motorcar and telephone expenses have to be sustained as personal use of the motor car and telephone cannot be ruled out. Insofar as the sale promotion and travel expenses are concerned, as per the Assessing Officer’s own admission, the assessee had submitted the details of such expenses. Therefore, without making necessary enquiry to prove that the expenditure claimed by the assessee under these two heads is not genuine or unverifiable, the Assessing Officer cannot disallow a part of it purely on ad–hoc basis. Therefore, in our view, no disallowance out of sales promotion and travelling expenses are called for. In view of the aforesaid, we sustain the disallowance made by the Assessing Officer out of motor care and telephone expenses
|