TMI Blog2014 (5) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... n favour of Assessee. Disallowance of Loss on Sale of Motor Car – Held that:- The Motor Car is a part of block of asset on which the assessee has already been claimed depreciation in the earlier years - the loss claimed by the assessee is related to a depreciable asset – it constitutes capital loss - the loss related to a depreciable asset does not constitute revenue expenditure and the disallowance made by the Revenue of Rs.23,123/- on account of loss on sale of motor car – Decided against Assessee. Disallowance of Premises User Expenses – Held that:- For the purpose of the examining the annexures submitted by the assessee, the matter should be remanded to the files of the AO – thus, the AO is directed to examine the annexures and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. The Ld CIT (A) erred in confirming the disallowance of Rs. 8,400/- on Conveyance Expenses. 6. The Ld CIT (A) erred in confirming the disallowance of Rs. 7,80,000/- on Premises User Expenses. 7. The Ld CIT (A) erred in confirming the disallowance of Rs. 3,23,533/- on Interest on Overdraft Unsecured Loans. 3. At the time of hearing, there is none to represent the assessee before us and however, it is seen from the file that the assessee filed a written submission. Considering the availability of Ld DR and his assistance, the appeals is taken up for adjudication. Referring to ground nos. 1, 2, 3 and 5 above, Ld DR mentioned that the assessee incurred expenditure on account of Motor Car, depreciation on Motor Car, Staf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idences regarding the claim of the assesssee. It is the admitted position that the expenses were incurred in connection with the welfare of the staff on day-to-day basis. No evidence was furnished by the assessee to substantiate his claim. Therefore, AO rejected the self-serving vouchers filed before him and made disallowance as above. Similar is the case of Conveyance Expenses and the assessee allegedly failed to evidence the claims. However, this is the claim of the assessee that the said expenditure was incurred for the local transport of the employees. Considering the incurring of expenditure in cash, the AO made the disallowances applying the ad-hoc disallowance @ 20% of the amounts debited to the P L Account on these four accounts. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated to a depreciable asset, the same is a capital loss and therefore, does not constitute revenue expenditure. Accordingly, AO disallowed an amount of Rs. 23,123/- on account of loss on sale of motor car. Matter carried in appeal before the first appellate authority, where in the CIT (A) dismissed the said ground as the same was not pressed by the assessee. 7. During the proceedings before us it is the submission of the assessee that the Motor Car was used for the business purposes of the assessee and therefore, the loss incurred on its sale is a loss of business and the same should not be termed as capital loss. 8. On the other hand Ld DR relied on the order of the AO and mentioned that the said Motor Car is a part of block of asset ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /-. Aggrieved, assessee carried the matter in appeal before the first appellate authority. 11. During the proceedings before the first appellate authority, after considering the submissions of the assessee, CIT (A) dismissed the appeal by stating that the assessee was failed to discharge the onus regarding the claim of Rs. 7,80,000/- as the same is being spent wholly and fully for business purposes. Aggrieved, assessee is in appeal before the Tribunal by raising above mentioned ground no.6 12. During the proceedings before us, assessee made written submissions in this regard and referred to some annexures, which were not examined by the AO at the relevant point of time. As per assessee, the said annexures constitute relevant details a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty. 16. During the proceedings before the first appellate authority, CIT (A) considered the submissions of the assessee and confirmed the addition made by the AO on account of interest on overdraft and unsecured loans. Aggrieved, assessee is in appeal before the Tribunal by raising the above mentioned ground no.7. 17. During the proceedings before us, assessee filed written submissions in this regard and reiterated the submissions made before the lower authorities. Per contra, Ld DR strongly relied on the orders of the Revenue Authorities. 18. We have heard both the parties and perused the orders of the Revenue Authorities as well as the material placed on record. On perusal of the record, it is noticed that the Revenue has erred i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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