Case Law Details
Ralhan Construction Company Vs ACIT (ITAT Delhi)
Regarding disallowance out of vehicle expenses of Rs.1,03,295/-, it is observed that the depreciation of Rs.49093/- is included in it. The depreciation is fixed expenditure in nature whether it is used exclusively for the business or partially for personal use. Thus, the element of some personal use has no role to play while granting depreciation on vehicle. Therefore, the assessee deserves deduction of depreciation of Rs. 49,093/- and rest of the addition deserves to be sustained for want of proper verification.
FULL TEXT OF THE ITAT JUDGEMENT
This is an appeal filed by the assessee against the order of ld.CIT(A)-XX, New Delhi dated 29.04.2016 for the assessment year 2012-13 on the following grounds :
1. That the learned Commissioner of Income Tax (Appeals) has erred in law and on facts in sustaining an adhoc disallowance of a sum of Rs.5,00,000/- on account of purchase of material and that too, without pointing out any discrepancy in the books of accounts so maintained by the assessee – appellant and as such, the said disallowance needs to be deleted.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
