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2020 (11) TMI 852 - AT - Income TaxDisallowance being ten percent of the claim in respect of travel expenditure u/s. 37(1) - expenditure is not fully supported by proper bills and vouchers and, besides, travel for personal purposes (of the Directors, etc.) could not be ruled out, so that a disallowance, accordingly, at 10% of the claimed sum stands made - HELD THAT:- The primary burden on the assessee afore-stated is for the reason that only it is in the knowledge of the facts of its’ case, and could therefore substantiate/explain the same. But that does not empower the Revenue to impute, without any factual basis, either absence of supporting bills/vouchers or a non-business purpose. It is only when called upon to demonstrate the business purpose of a travel that it could be said that the assessee has, or has not, been able to prove the same, which would, in that case, be a matter of the evidence/s led and explanation/s furnished. No such exercise has been carried out in the instant case, and the Revenue’s charge is, we are afraid, no more than a bald claim. Why, there is in fact even no claim of the expenditure incurred being at a disproportionate or substantial increase over that incurred under the same head in the past. No wonder the ld. Departmental Representative (DR) was unable to answer any of the queries raised by the Bench in this regard during hearing. No hesitation in directing the deletion of the impugned disallowance, and the assessee succeeds. Disallowance of expenditure claimed toward vehicle repair & running - HELD THAT:- What is meant thereby is for the personal purposes of the person concerned, so that it becomes an other than business, or non-business expense in the hands of the company claiming the same, disallowable u/s. 37(1) - It is only where the same is contractually provided by the company, and taken into account in computing salary income, i.e., at the perquisite value thereof, of the person/s concerned, that no disallowance on this count, i.e., euphemistically called personal expenditure, could be made in the hands of the employer-company. Revenue is, thus, justified in making a disallowance toward estimated expenditure for such non-business purpose, which, at less than 4% of the total expenditure, seems fairly reasonable, being even otherwise around ₹ 4,000 per month only. No claim of an excess disallowance has in any case been made. The disallowance is, accordingly, upheld, and the assessee fails.
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