Expense on telephone installed at house of Director cannot be disallowed for personal use

ACIT Vs Metallizing Equipment Co. (P) Ltd. (ITAT Jodhpur) In Hero Cycles Ltd. v. Asstt. CIT (1999) 63 TTJ (Chd) 665. Tribunal, Chandigarh, has held that the expenditure on telephone installed at the residences of directors is not covered by section 38(2) and expenses in case of a company cannot be for non-business purposes and the same cannot be disallowed. In Bhorot Motor Parcel Service v. ITO (1992) 44 TTJ (Hud) 404, Tribunal, Hyderabad, has held that partly disallowing of expenditure on telephone installed at the residence of managing partner on the presumption of personal use is not just...