Depreciation and maintenance of sports car allowable as used for business purpose

Silver Spark Apparel Ltd Vs DCIT (ITAT Mumbai)

ITAT Mumbai held that action of AO in disallowing 50% of the depreciation and maintenance charges on the sports car is unsustainable as sports car was owned and used for the purpose of business and AO failed to establish that the sports car was not used fully for the purpose of business.

Facts-

The assessee filed its return of income on 22.11.2013 declaring total income of Rs. 24,24,21,580/-. Assessee’s case was selected for scrutiny and a show-cause was issued for disallowance of depreciation on Sports Car.

Conclusion-

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