04 September 2013
One of our Professional colleague is practicing as Chartered Accountants under the Status of partnership Firm having 3 Partners.
The Firm is paying Partner's Remuneration to partners as specified in partnership Deed & as per I.T.Act.
During the year 2012-13 one of Partner who headed/Looked after the office is getting Rs.600000/- as Partner's Remuneration & the same is allowable as expenses in the hands of Firm as per law.
The said partner is also having a Motor Car in his individual name but the same is used for official purposes of Firms Profession. Moreover the partner also have vehicle Loan on the said car for which he is paying Interest on such loan.
Now query is whether the partner is eligible to claim as expenses like Depreciation on Motor car,Petrol Expenses & Interest on such Motor car Loan paid during the year under consideration from the Partner's Remuneration of Rs.6.00 Lacs as Business or Professional Income while computing his Individual Taxable income for the purposes of filing of ITR relevant to Astt.year 2013-14 or not.
04 September 2013
still i think the exp shall be divided if used for both and there are even cases where even if a person is not the owner still can claim dep and related exp to such assets if uses for own business puporse u can refer VK Singhania having few cases in that.
CAclubindia
