9911796707
TMI Blog1990 (4) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... ever, reduced the disallowance to a figure of Rs. 1,500. 3. The learned counsel for the appellant at the outset invited our attention to the history of the case vis-a-vis the position prevailing in the earlier assessment years. On the basis of the chart furnished to us it was urged that in asst. yrs. 1980-81 to 1982-83 the disallowance had been maintained at a figure of Rs. 400 and that also on the basis of the orders of the first appellate authority. According to him the aforesaid decisions of the first appellate authority had been accepted by both the parties and no further appeals were filed to the Tribunal. In respect of asst. yr. 1983-84 it was also urged that a disallowance of Rs. 1,500 maintained and the appeal was still pending di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the assessment order for the immediately preceding assessment year: "On verifications of the R.T.O. Tax Expenses in profit and loss a/c of second period it is seen that the assessee's vehicle is not utilised for the purpose of business and hence the R.T.O. tax debited by the firm is not allowable as the motor car is not in working condition. There is also no expenditure incurred by the assessee firm for using the motor car." 7. The CIT(A) confirmed the disallowance on the following lines: "The next ground of appeal is against the disallowance of road tax of Rs. 697 in respect of a car which has been with the appellant for the past 35 years. However, it is admitted that the car is not used for business. It has been kept for sentiment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is an accepted fact that it is not being so used for quite some time. The argument of the learned counsel that the expenditure in question is in the direction of maintaining a business asset must also fail since a motor car cannot be said to be maintained only by the payment of road tax since further expenditure is also required to keep it in working condition and ready for use as and when desired. No evidence has been brought on record to show that some expenditure was incurred towards servicing charges, use of petrol, etc. to keep the car in a running condition. There is also no evidence to show that any spare parts or other accessories may have been purchased once again in the direction of keeping the car in a running condition. It ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
