TMI Blog2012 (7) TMI 399X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance restricted to Rs. 10,000/- as some personal element is inevitable, with nothing on record to show that the expenditure for the same has been separately incurred. Disallowance of expenditure on account of depreciation on car - personal as well as non-business user of the said vehicle/s - assessee, with reference to the relevant provisions of the Act, contends that the provision of section 38(2) does not apply to the depreciation u/s 32(1)(i) of the Act, but only to intangible assets as specified u/s. 32(1)(ii) of the Act – Held that:- There could be no disallowance u/s. 38(2) of the Act in respect of the depreciation on motor car, a tangible asset, covered u/s 32(1)(i) of the Act - disallowance is thus deleted - Needless to add, the written down value of the relevant block of assets would stand to be adjusted downward and restored to its correct value – In favor of assessee Disallowance of expenditure on tour and travel – Held that:- There are no details/particulars of the expenditure incurred. The date/s of travel, of the conferences, of the meetings attended, etc.; the mode of conveyance; the places/doctors (in contradistinction to the stations) visited, etc., nay, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the course of assessment proceedings to be at a decline of about 10% with reference to the profit for the immediately preceding year, being at about 73.27%. The assessee s books of account were examined and the assessment framed after making disallowances in respect of various sums aggregating to Rs. 1.40 lacs, assessing the total income at Rs. 10,16,294/-. The assessee was substantially unsuccessful before the first appellate authority, so that he is in second appeal before us. We shall take up each of the several disallowances agitated against per separate grounds, several in number, in seriatim. 3. The first, confirmed in toto by the ld. CIT(A), is qua disallowance for Rs. 5,943/-, out of the assessee's claim for general expenses in the sum of Rs. 22,701/-. Certain expenses (viz. tea expenses for Rs. 10,211/-) were observed to be not verifiable, being not properly vouched, and accordingly disallowed at 25%, while another block of different expenses (Rs. 3,390/-), comprising various specified expenses (viz New Year s Celebration, Picnic expenses, Subscription to Lions Club and Associated Club) were disallowed by the AO as not allowable as business expenses. The disallowance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry transaction, and the assessment has to be made looking at the prevalent facts and circumstances in their totality. Again, there is no reference to the expenditure claimed in the preceding year/s. We, therefore, restrict the disallowance to Rs. 10,000/- as some personal element is inevitable, with nothing on record to show that the expenditure for the same has been separately incurred. 6. The third ground relates to the disallowance of expenditure on account of depreciation on car at 30% of the claimed sum on the same basis, i.e., personal as well as non-business user of the said vehicle/s. The same stood confirmed by the ld. CIT(A) on the same basis, though restricted the disallowance to 25%, i.e., the ratio at which he had confirmed the disallowance in respect of vehicle repair and maintenance, thus maintaining consistency. The assessee has wrongly stated in his ground that the disallowance has been confirmed at Rs. 15,404/-, i.e., as disallowed by the AO, the same being only at Rs. 12,837/-. 7. We have heard the parties and perused the material on record. The argument in support of the proportionate disallowance u/s. 38(2) by the Revenue is un-exceptional, even as the ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vel and the concomitant boarding and lodging, if any. If the travel has been undertaken by the personal vehicle/s, the same stands already covered by the claim of expenditure thereon, while if it is outsourced, as by hiring a vehicle, we are unable to see as to why relevant vouchers from third parties - in fact, for the entire expenditure incurred - to whom the payment/s has been made, could not be furnished. The entire claim, as we see it, is de hors any material. Also, the professional purpose of the travel, assuming so, has also not been substantiated; the onus of which is again squarely on the assessee. So, however, again, solely on the basis that it may not be possible to vouch every expenditure, and that some travel for professional purposes may have been incurred by the assessee, a senior doctor, restrict the disallowance to Rs. 25,000/-. The assessee gets the partial relief for Rs. 6,215/-. We decide accordingly. 10. The fifth disallowance being agitated relates to the claim in the sum of Rs. 58,625/- in respect of water and electricity expenses. The assessee is using his premises as his home as well as clinic, for which no separate connection for water and electricity ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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