TMI Blog2018 (3) TMI 1653X X X X Extracts X X X X X X X X Extracts X X X X ..... n adhoc basis. The reliance placed by the assessee on the case of CIT Vs. Dinesh Mills Ltd. (2005 (1) TMI 699 - GUJARAT HIGH COURT) wherein it has been categorically held that no personal use of car or telephone expenses can be attributed to company assessee and, therefore, cannot form the basis for disallowing the expenses. This proposition has been reiterated in a number of other decisions al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The effective grounds raised by the assessee read as under: 1. The Ld. Commissioner of Income Tax (Appeals)-2, Ludhiana has erred in law and on facts of the case:- a) By arbitrarily and wrongly confirmed the disallowance of ₹ 46514/-, made by the Ld. A.O @ l/6in out of telephone expenses of ₹ 2,79,084/-, on adhoc basis towards non business purpose, without considering the fact t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the car expenses incurred by the assessee amounting to the ₹ 1,91,275/- for the reason that no log book had been maintained by the assessee for the same and, therefore, the possibility of incurring the said expenses for personal purposes could not be ruled out. 5. The Ld. CIT(Appeals) upheld the disallowance so made. 6. Before us, the Ld. counsel for assessee pointed out that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee in this regard on the decision of the Hon ble Gujarat High Court in the case of CIT Vs. Dinesh Mills Ltd. (2005) 148 Taxman 76 (Guj) wherein it has been categorically held that no personal use of car or telephone expenses can be attributed to company assessee and, therefore, cannot form the basis for disallowing the expenses. This proposition has been reiterated in a number of other decision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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