TMI Blog1990 (5) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... ate on car maintenance. The basis for the claim is that as per the understanding between the partners the assessee has to bear the conveyance and travelling expenses. But the ITO found that there was no provision in the partnership deed to this effect. Therefore, he declined to allow the claim. 2. On appeal, the AAC held that the onus is on the assessee to prove that the expenditure was for business purposes and this onus was not discharged. She confirmed the addition. 3. Dr. S. Narayanan, the learned counsel for the assessee submitted that although the partnership deed does not refer specifically to such an expenditure, it was clearly understood that the conveyance expenditure was to be borne by the assessee. He referred to cl. (5) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g cartons and packing materials according to the requirements of the customers do require travel within the city. It is a fact that the firm has no vehicle. Granted that the business travel in this case is necessary and granted that the firm has no vehicle, it follows that such travelling must have been done by the partners themselves. We also noticed that the assessee has 50 per cent share in one partnership and 30 per cent in another. It is a quite possible that the higher profit sharing was agreed on the conditions that the assessee should undertake the travelling at his own expenditure. We are, therefore, satisfied that the assessee's claim can be admitted. We direct the ITO to allow the claim. 5. We now take up the departmental appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .C.D. and D.D.A., etc. He also produced certificate to show that these two persons were employed for this purpose. 7. We have considered the submissions. Shri Bakhshi for the Department pointed out in the prior assessment year, the assessee had not claimed such a large amount. It is for the first time that such a claim is being made. It is necessary, therefore, to find out whether the assessee had incurred this expenditure. As far as that part is concerned, there is evidence to show that the assessee has employed two persons by name Kedar Nath and J.B. Sharma. Shri Kedar Nath (sic) various aspects of the property atHardhian Singh Road. He was paid Rs. 13,200. A similar certificate has been given by Shri J.B. Sharma. Thus it is establi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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