TMI Blog2017 (4) TMI 1143X X X X Extracts X X X X X X X X Extracts X X X X ..... de on account of car depreciation claimed as deduction under section 32 of the Act. However, in respect of the interest expenditure on the car loans raised by the assessee there is no merit in the claim of the assessee. Accordingly, 50% of the balance expenditure is to be disallowed in the hands of assessee. In the paras hereinabove, we have already restricted the disallowance to 10% out of the total expenses for personal use and after excluding the same 50% is to be disallowed under section 14A of the Act. Disallowance made on account of interest paid against the interest income earned by the assessee on FDRs and other deposits - Held that:- As assessee referred to pages 9 to 13 of the paper book to establish the link between the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat of ₹ 5,62,761/- on account of expenses claimed under section 57(iii), that of ₹ 2,66,103/- under section 14A made by the Assessing Officer and that confirmed by the Ist appellate authority is unwarranted, unjustified, contrary to the provisions of the act and facts prevailing in the case. It may further be held that no disallowance/addition is warranted in the case of the appellant. The addition/disallowance so made and confirmed by the Ld. Appellate Authority below be deleted. The appellant be granted just and proper relief in this respect. 2. The appellant be granted consequential relief if any as deemed to be fit. 3. The appellant prays to be allowed to add, amend, modify, rectify, delete, raise any grounds of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... name of the assessee since sanction of loans in the name of a construction firm was not made by many banks. However, the cars were being used by the said partnership concern and the assessee had one more car on which no deduction was claimed. The assessee also explained the utilization of the funds received from the two persons against which interest income was claimed as deduction. The Assessing Officer observed that since the assessee has not maintained any log book of the vehicle it was difficult to verify the exact use of the vehicle for the business purpose and in the absence of same the expenditure incurred on car including depreciation totaling ₹ 6,66,379/- was disallowed in the hands of assessee. Further the expenditure claime ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s ₹ 2,66,571/- was disallowed under section 14A of the Act. The CIT(A) allowed the claim of assessee in respect of interest on borrowed funds utilized for investment in the partnership firm. In respect of the disallowance made on interest claimed as expenditure under section 57(iii) of the Act, the CIT(A) upheld the disallowance in the absence of any direct and proximate connection between the investment made. 6. The assessee is in appeal against the order of CIT(A). 7. The Ld. Authorised Representative for the assessee pointed out that where the assessee was maintaining three cars out of which in respect of one car no expenditure was claimed and the balance cars were used for the purpose of business of the firm, in which the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be made on account of car depreciation claimed as deduction under section 32 of the Act. However, in respect of the interest expenditure on the car loans raised by the assessee there is no merit in the claim of the assessee. Accordingly, 50% of the balance expenditure is to be disallowed in the hands of assessee. In the paras hereinabove, we have already restricted the disallowance to 10% out of the total expenses for personal use and after excluding the same 50% is to be disallowed under section 14A of the Act. 12. The last issue raised by way of Ground of appeal No.1 itself is the disallowance made on account of interest paid against the interest income earned by the assessee on FDRs and other deposits during the year under consider ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
