TMI Blog2019 (2) TMI 272X X X X Extracts X X X X X X X X Extracts X X X X ..... etails have been maintained qua each of the vehicles/mobile numbers. The issue may also be of a recurring nature. we are of the view that instead of arriving at an arbitrary estimate, it is appropriate to set aside the issue back to the file of the CIT(A) with the direction to take the past history of the assessee into consideration and confine the disallowance to be made only on the grounds of personal usage to the specific cars/mobile/phones stated to be used by the partners, in case the claim is found to be correct on record. - Appeal of the assessee is allowed for statistical purposes. - ITA No. 899/CHD/2018 - - - Dated:- 30-11-2018 - Smt. Diva Singh, JM And Smt. Annapurna Gupta, AM For the Assessee : None For the Reven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he relevant discussion in paras 5 to 5.4 of the order is reproduced hereunder : 5.0 Disallowance of car and telephone expenses for personal use:- 5.1 During the course of assessment proceedings it has been noticed that the assessee has debited certain expenses to the profits 85 loss account (like car/telephone), part of these expenses bear the nature of personal use, the details of which are as under:- Sr. no. Nature of expenses Amount (In Rs.) 1. Car repair and maintenance 1178961 2. Telephone expenses 1186999 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es cannot be ruled out. Section 38(2) of the Income Tax Act, 1961 provides that:- Where any building, machinery, plant or furniture is not exclusively used for the purposes of the business or profession, the deductions under sub-clause (ii) of clause (a) and clause (c) of section 30, clauses (i) and (ii) of section 31 and [clause (ii) of subsection (l)j of section 32 shall be restricted to a fair proportionate part thereof which the [Assessing] Officer may determine, having regard to the user of such building, machinery plant or furniture for the purposes of the business or profession. 5.4 Hence 1/6th of expenses of ₹ 43,07,767/- comes to ₹ 7,17,961/- which is disallowed and added to the total income of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hicles/mobile numbers. In view thereof and considering the fact, the issue may also be of a recurring nature. we are of the view that instead of arriving at an arbitrary estimate, it is appropriate to set aside the issue back to the file of the CIT(A) with the direction to take the past history of the assessee into consideration and confine the disallowance to be made only on the grounds of personal usage to the specific cars/mobile/phones stated to be used by the partners, in case the claim is found to be correct on record. Needless to say that a reasonable opportunity of being heard be granted to the assessee. Said order was pronounced in the Open Court at the time of hearing itself. 7. In the result the appeal of the assessee is al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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