TMI Blog1976 (11) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... poses. This disallowance was reduced on appeal by the AAC to 1/3rd. It is now contended that this disallowance is too high and should be reduced to 1/4th. It is pleaded that the nature of business carried on by the assessee was such that the car was being mostly used for business purposes and seldom for private purposes. From the chart of expenses claimed and allowed in the past, we found that in the asst. yr. 1970-71, the entire claim of Rs. 1,053 was allowed, although in the earlier years the disallowance was being made at one half of the claim. Perhaps in the asst. yr. 1970-71 the Department realised that the car expenses were incurred wholly for the purpose of business. Having regard to the fact that the car was being put of personal us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nBhopaloffice i.e. the branch. We find from the chart filed before us that in the previous years also some disallowance were made under this head. It cannot therefore, be said that the entire expenditure incurred under this head could be said to have been incurred wholly and exclusively for the purposes of business and no personal expenses on behalf of the partners were included. However, having regard to the nature of business, we think the disallowance is slightly on the high side. We would reduce the disallowance in the head office to Rs. 500 and in the branch to Rs. 750. We may, also ad that in the branch there was an increase under this head from Rs. 3,227 in the previous year to Rs. 6,822 in the year under appeal, and this increase wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the head office and Rs. 129 in the branch. It is now pleaded that these were not really bad debts but discount or remissions granted against bills raised for goods supplied to Govt. Department. Having regard to the nature of these amounts, it cannot be said that the discount or remissions granted out of the bills raised against Govt. could not be allowed as deduction. They were, in our opinion, incurred for the purpose of business. If business exigencies warrant allowance of discount or granting remissions, they could not be said to be not for the purpose of business. We, therefore, allow the entire claim not on the ground that they were bad debts but on the ground that they were business expenses. 7. The other grounds raised were not p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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