TMI Blog1989 (9) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... ess activities. It had set up an independent silicon manufacturing unit and, for the year under consideration, it claimed deduction under s. 80J for Rs. 2,35,677. The IAC (Asst) was of the opinion that it was quite possible that part of of the internal funds of the aforesaid unit came from the borrowed funds of the main branch and that there was no evidence to show that the internal funds coming to silicon unit consisted only of share capital or resources from the main unit. He, therefore, held that rational basis for working out the deduction under s. 80J would be to "apportion the capital employed of the silicon unit between the capital employed and the total capital of the main unit." The working of deduction under s. 80J is embodied at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een brought on record before him to show that anything happened during the previous year relevant to asst. yr. 1980-81 which made the debt bad. He, therefore, upheld the disallowance of Rs. 9,300. 6. Shri Aggarwal submitted that the assessee had supplied certain goods to the Punjab State Electricity Board and the Board required the assessee to carry out certain repair work. The assessee found that the expenses involved on the repair and rectification were more than the claim of Rs. 9,300. In that view of the matter, the assessee-company wrote off the aforesaid amount of Rs. 9,300. It was urged that this claim may be allowed in full. He also relief upon Bombay High Court decision in the case of Jethabhai Hirji and Jethabhai Ramdas vs. CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contemplated by s. 155(6) of the IT Act. We wish to make it clear that no such ground was taken by the assessee before the CIT(A) or even before us. We do not consider such a direction to be necessary for the disposal of this ground. The assessee may, if so advised, approach the AO in this regard. 9. The next ground is against the disallowance of bad debts amounting to Rs. 1,795. A sum of Rs. 1,341 was due to the assessee from Beas Satluj Project from July, 1973. Similarly, a sum of Rs. 454 was due to the assessee from Telephun Ken (I) Ltd. since September, 1972. These debts were disallowed on the ground that these were time-barred. The learned CIT(A) found that nothing had been brought on record to shown that these debts had become bad d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the authorities below. 15. We have carefully examined the facts on record. It is an undisputed fact that the funds for the purchase of the aforesaid car were provided by the assessee-company. The car was purchased in the name of an employee of the assessee-company. As held by the Calcutta High Court in the case of Salkia Transport Associates, registration is not an essential pre-requisite for the acquisition of ownership of a motor vehicle, but is an obligation cast upon the owner of a vehicle for the purpose of running a vehicle in any public place. In that view of the matter, we hold that the assessee, being the owner of the car, was entitled to depreciation. We hold accordingly. 16. The next ground is against the disallowance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, do not find any warrant for interference in the order of the CIT(A). This ground, therefore, fails. 18. The last ground is against the disallowance of Rs. 8,375 out of the total telephone expenditure of Rs. 41,875. The IAC (Assessment) found that telephone expenses in respect of residential telephone of the Managing Director, Shri Vinay Rai, amounted to Rs. 41,875. He disallowed 1/5th of such expenses amounting to Rs. 8,375. The learned CIT(A) found that some disallowance out of telephone expenses was made in the asst. yr. 1979-80 and the same was accepted by the assessee. He, therefore, confirmed the disallowance of Rs. 8,375 on account of personal use of telephone. 19. Shri Aggarwal, submitted that the telephone had been provided a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
