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2022 (9) TMI 71 - AT - Income TaxDisallowance of depreciation on car on estimation basis - Car used for personal purpose of the partners of the assessee firm - Assessee contented no basis with the Revenue authorities to hold that the car had been used for personal purposes and the disallowance was based merely on surmises and conjectures - HELD THAT:- There is no basis given by the AO for his finding that the car was used for personal purposes also alongwith user in the business by the assessee. He merely states that personal user cannot be ruled out. No details have been called for, nor any inquiry done on the issue by the AO. On the contrary the AO mentions the assessee producing all books of accounts and vouchers and he having test checked the same. Nothing adverse has been found by the AO in the books of the assessee also. The disallowance surely is purely adhoc. We see no reason to uphold the disallowance and we direct the deletion of the same. Set off of unabsorbed loss of preceding year - We direct the AO to grant benefit of set off of brought-forward losses if any as available as per law.
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