Case Law Details
Selva Ganesh Constructions Private Limited Vs ITO (ITAT Chennai)
ITAT Chennai held that claim of depreciation and other related expenses is allowed to the company as the cars, registered in the name of directors, are used for the purpose of business.
Facts-
The assessee challenged the order of the Commissioner of Income Tax (Appeals) confirming the action of AO in disallowing the expenses claimed by the Assessee without deduction of Tax Deducted at Source [TDS] by invoking the provision of Section 40(a)(ia) of the Act. Accordingly, AO made disallowance for the office rent paid to the Directors, payments made to Hypercube Architect, Directors remunerations, interest paid to Directors and salaries paid to employees, etc.
Further, assessee also challenged the order of the Commissioner of Income Tax (Appeals) confirming the action of AO in disallowing the claim of depreciation and expenses on motor vehicles, i.e. insurance, interest on vehicle loan, vehicle maintenance and other repairs, etc. for the reason that the aforesaid motor vehicles are registered in the name of individual Directors of the Assessee Company.
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