TMI Blog2005 (7) TMI 319X X X X Extracts X X X X X X X X Extracts X X X X ..... . 1,500 out of vehicle and travelling expenses. 3. Out of the total expenses to the tune of Rs. 7,000 and odd, the AO made addition of Rs. 1,500 as the expenses were not properly vouched and the element of personal use out of travelling and vehicle expenses could not be ruled out. The learned CIT(A) confirmed the action. In my considered opinion, it would be just and fair if the addition is redu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e asset side of the balance sheet at Rs. 10,96,795 was his personal asset. The assessee had only shown credit balance of his capital of Rs. 2,84,158. In this way, it was noticed that the assessee had total debit balance of his capital of Rs. 8,12,637 (Rs. 10,96,795 minus Rs. 2,84,158). It was, therefore, opined that the assessee had utilized the interest-bearing loans taken for overdrawing his cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eding year. It was, therefore, urged that no disallowance was warranted in this year as well. It was also submitted that even if the expenditure on interest was held to be not allowable against business income, still the assessee would be entitled to claim of deduction under s. 24 of the Act because the amount was borrowed for acquiring or constructing the residential house. He relied on certain d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years and no disallowance of interest was made in the earlier years. I find force in this submission of the learned Authorised Representative as it has been held in CIT vs. Sridev Enterprises (1991) 97 CTR (Kar) 80 : (1991) 192 ITR 165 (Kar) that no disallowance of interest to the extent of opening capital balance can be made where such disallowance was not made in the earlier years. In view of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the very basis of addition is the estimate of household expenses, being without any specific details. As it is a question of estimate only, I am of the considered opinion that it would be in order if the addition is reduced by 50 per cent to Rs. 10,250.1 order accordingly. 12. Last effective ground regarding charging of interest under s. 234B being consequential, is disposed of accordingly. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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