Disallowance of Car & Telephone Expenses Deleted as Company Cannot Have Personal Expenses

Raunaq International Ltd. Vs CIT (Delhi High Court) The Delhi High Court considered an appeal concerning the disallowance of one-sixth of telephone expenses and car expenses incurred by a company. At the outset, the appellant pointed out that the question relating to club charges contained a typographical error because the Income Tax Appellate Tribunal (ITAT) had already allowed that claim in its order dated 7 October 2005. The dispute before the Court therefore centered on the disallowance of one-sixth of telephone and car expenses. The appellant submitted that similar disallowances made by t...