TMI Blog1977 (4) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... ture. Hence he disallowed the entire claim. 2. When the matter came in appeal before the AAC, the assessee disputed the disallowance of the claim and it was contended on behalf of the assessee that the view taken by the ITO was not correct and even if the expenditure had been incurred on some structural changes, it was a legitimate deduction as held in M/s. Girdhari Das Sons vs. CIT(1). To AAC referred to the facts of that case as also the decision given therein and some other decisions also. According to him, in the present case the expenses had been incurred on furniture and fixtures. He also referred to Bill No. 4472 dt. 9th Sept., 1974 for Rs. 9,348 issued by M/s. Kartar Furniture House, Kanpur from which it appeared that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diture of Rs. 15,621 had been incurred through Shri Phool Chand Jain, who looks after the sales side and is a close relative of the partners as well. He gets his salary of Rs. 12,000 per annum from the firm. Another sum of Rs. 650 had been spent by one Shri Chhangamal Jain who is also an employee of the assessee and a close relative of the partners. He further found that two payments of Rs. 5,000 and Rs. 4,710 had been made to Shri Phool Chand Jain otherwise than by crossed cheque or crossed draft. Accordingly out of the total expenses claimed at Rs. 1,16,700 he disallowed Rs. 12,000. The AAC has agreed with the ITO in regard to the two items of Rs. 5,600 and Rs. 4,710 and has held that the assessee had failed to prove that these payments w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nses on behalf of the assessee on different dates and these two payments were made to reimburse him for the same. Similar expenses had been incurred by him on assessee's behalf, in the preceding years, but no disallowance was made. It was stated that full vouchers of these expenses are available. For all these reasons, we hold that disallowance of Rs. 12,000 out of advertisement expenses was not justified and we delete it. 6. The next ground is against the disallowance of Rs. 4,898 out of car expenses. The assessee had purchased a car for the first time in the relevant previous year. Before that he was having a jeep. The ITO disallowed 1/2 out of car expenses and depreciation in the same proportion for personal use of the car by the part ..... X X X X Extracts X X X X X X X X Extracts X X X X
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