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2023 (10) TMI 19 - ITAT DELHIAllowability of business expenses - Disallowance of interest of loan, commission paid, brokerage paid, professional charges paid, depreciation of car and 50% towards petrol and maintenance expenses of car - HELD THAT:- Except for disallowance made towards petrol and maintenance expenses on car, we find that assessee had substantiated the claim of its expense with corroborative documentary evidence which are justified taking into account the line of business in which it is engaged. We note from the order of AO that nothing specific has been pointed out to justify the disallowances/additions made except for a general statement that claim of the assessee is not tenable. We have gone through the documents referred by the learned counsel as stated above and find force in the submissions so made. The expenses claimed by the assessee as stated above are legitimate business expenses which are allowable u/s 37(1) (depreciation on car under Section 32 of the Act). The conditions prescribed under Section 37(1) and 32 of the Act have not been violated by the assessee, since, nothing is brought on record by the authorities below as well as by the learned Sr. DR to demonstrate otherwise. Accordingly, we delete the addition/disallowances made by AO for which the assessee is in appeal before the Tribunal except for expenses toward petrol and maintenance of car which have been disallowed by restricting it to 50% by the learned Commissioner of Income-tax(Appeals). For the disallowance made towards petrol and car maintenance expenses the addition is sustained. Accordingly, grounds taken by the assessee except for the one towards petrol and car expenses are allowed. Appeal of the assessee is partly allowed.
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