Interest on unsecured loan

Ofcourse there is nothing prohibiting allowance to such legitimate business expenses for Auditable and Non-Auditable assessees.

Yes the expenses will be allowable if the car is used for official purposes only.

There should be no scope for personal use.

However, at any subsequent time AO can disallow 20% of the total interest, since for prudence buisness practice and in the interest of revenue department, it is assumed in the IT Laws that some use of car is being made for personal. Therefore for standing on safe side, it is advisable to claim only 80% of the total expenses, in comp. Of income of the related buisness, related to car (like dep., int.,)

Agree with Naresh Patel. .

there is nothing wrong in the treatment of unsecured loan

Yes the expenditure is allowable. 

expernditure is allowable i guess ....because the car is used for official purpose Senior Citizen Deposits

Yes It is allowable

Yes the espenditure is allowable but also i am totally agreed wid Naresh Patel. So the same should be kept in mind.

Agree with Naresh,he gave the most practical answer..