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| The Tax Publishers2020 TaxPub(DT) 4496 (Pune-Trib) INCOME TAX ACT, 1961
Section 32
Where AO disallowed depreciation claimed by assessee-company on motor vehicles on allegation that same were purchased in name of directors of assessee, there could not be any disallowance on account of personal use by the director-employees of assessee by treating such expenditure as not having been incurred for the business purpose.
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Depreciation - Allowability - Allegation that vehicles purchase in name of directors of assessee-company -
Assessee company was engaged in business of builders and developers. AO disallowed claim of depreciation on motor vehicles. Vehicles were purchased in name of directors of assessee-company, therefore, AO alleged that in absence of ownership of asset, depreciation was not allowable.Held: As decided in assessee's own case, there could not be any disallowance of personal expenses for cars on account of personal use by director. It was further held that no disallowance can be made even by treating such expenditure as not having been incurred for the business purpose. There could be no disallowance on account of personal use by the director-employees of the assessee and such an amount can be treated as a perquisite in the hands of the employees.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2014-15
INCOME TAX ACT, 1961
Section 80-IA
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