Moodbidri Mithun Chowter Vs DCIT (ITAT Bangalore)
ITAT Bangalore held that the assessee has failed to furnish entire motor car expenses details accordingly 50% disallowance with regard to motor car and motor bike expenses confirmed.
Facts- Vide the present appeal, the assessee has challenged only two issues regarding disallowance of Rs. 1,99,291 towards motor car & Rs.29,345 on motor bikes; and adhoc disallowance towards salary, rent, machine charges & bonus.
Conclusion- Held that assessee has not furnished the entire motor car expenses details and personal use cannot be denied as the assessee himself has disallowed 20% of the expenses. The ld. AR was unable to produce any log book maintained. Therefore we confirm 50% of the disallowance made by the ld. FAA in respect of motor car and motor bike expenses accordingly the assessee gets relief of 50% of addition made on this account. However, credit should be given to the assessee of suo motu disallowance of 20% of expenses of Rs.38,958. Accordingly this ground is partly allowed.
With regard to adhoc disallowance of rent it is held that there is no dispute that business was carried on by the assessee on the same premises during the year and as per copy of the ledger, assessee has paid rent for whole the year and there is no dispute regarding payments made to the landlord. Therefore, the genuineness of the payment cannot be denied.
