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TMI Blog2023 (3) TMI 410X X X X Extracts X X X X X X X X Extracts X X X X ..... the rejection of use of Audi Car. Further the applying of Section 13(3) is also quite arbitrary and unjustified as none of the employee are in relation of the Trustee, Members or board of the society whose used the car. The said car is purely used for education and charitable purposes. 3. That the Learned CIT(A) has erred in holding that log book is not maintained ignoring that log book only necessary where is same is on hire purposes. Further the copies of resolution for the purposes of purchase and its use were furnished which are on record. 4. That the additions of Rs. 1318132/- treating taxable u/s 164(2) of the Act sustained by the Learned CIT(A) ignoring that the vehicle maintenance and fuel expenses are duly considered by the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rieved against this, the assessee carried the matter in appeal before Ld.CIT(A) who confirmed the addition and dismissed the appeal of the assessee. 6. Aggrieved against the order of Ld.CIT(A), the assessee is in appeal before this Tribunal. 7. Apropos to Ground Nos. 2 to 4, Ld. Sr. DR strongly relied upon the orders of authorities below and submitted that there is no infirmity into the orders passed by the authorities below. He submitted that the assessee society applied its funds on purchase of luxury car i.e. Audi Car for the benefit of trustess only. He submitted that the authorities below have given categorized finding in this regard. 8. I have heard Ld. Sr. DR and perused the material available on record. Vide letter dated 25.01.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal no. 4170/DEL/2011 dated 22-11-2011, copy enclosed. C. The assessment order u/s 143(3) were made for the a/year 2011-12 and then a/year 2019-20 by the Ld. AO of exemption ward, copies were furnished on 10-10-2022 of date of hearing 19-10-2022. Regarding assessment order u/s 143(3) dated 22-12-2018 passed by Learned ITO Exemption ward Rohtak, the submissions regarding purchase of car, log book and explanation of section 10(23c)(iiiad) were duly furnished in details with depreciation chart expenses details i.e. salary of driver and maintenance expenses, but in the end the Ld. ITO Exemption ward passed the order at assessed income of Rs. 1318130/- by treating the use of car not for education purposes as under:- "The reply of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udi car in his impugned order. However, the AO disallowed the expenses treating the same as not for charitable purposes. In my considered view, the expenditure would be allowable if it relates to running of school. The AO has not brought any material to rebut the claim of the assessee that the vehicle was being used for principal and staff of school. Merely because the vehicle happens to be luxury car should not be reason to make disallowance when in earlier years, claim of assessee was accepted. I therefore, direct the AO to delete the disallowance. The grounds raised in this appeal are allowed.
10. In the result, the appeal of the assessee is partly allowed.
Order pronounced in the open Court on 09th March. 2023. X X X X Extracts X X X X X X X X Extracts X X X X
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