Disalloance of Business Expenditure ::

Court :
Tribunal

Brief :
Held that no amount can be disallowed on account of estimated personal use of vehicles and telephone by directors and their family members in case of a company. Hence, disallowance of Rs. 1 lacs each from vehicle and telephone expenses was not justified.

Citation :
Hira Steel Ltd Vs. ITO, ward 2(1), Raipur

Disallwance of Business Expenditure Hira Steel Ltd Vs. ITO, ward 2(1), Raipur 4/29/2005 IT Appeal Nos. 144 (NAG.) of 2004 Case Fact: Whether A.O. was justified in disallowing Rs. 1 lacs each from vehicle running and telephone expenses on ground of estimated personal use by the directors and their family members. Decision: Held that no amount can be disallowed on account of estimated personal use of vehicles and telephone by directors and their family members in case of a company. Hence, disallowance of Rs. 1 lacs each from vehicle and telephone expenses was not justified.

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Judgement posted by

CA.Saibaburao Nanduri

Chartered Accountant

I am a commerce graduarte of Andhra University. Studied at HINDU COLLEGE, Guntur. Became FCA and started Practice under the name and style of M/s SAIBABU RAO CO I became Chairman of CA Institute, Guntur Branch, during the year 2008-09 My post qualifications are: Information Systems Audit DISA (ICAI) ... Read more

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