Vehicle expenses allowed as expense to the Company when vehicle is used by Director employees

Last updated: 06 June 2023

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The Income Tax Appellate Tribunal (ITAT), Pune, has ruled that expenses incurred on vehicles used by director employees can be treated as business expenses for the company. The tribunal allowed depreciation and maintenance costs, overturning a partial disallowance made by the Assessing Officer. This decision was based on previous rulings that the use of company cars by directors cannot be solely characterised as non-business use.

Court :
ITAT, Pune

Brief :
The ITAT, Pune in M/s. Pushpak Steel Industries Pvt. Ltd. v. ACIT, Circle-10, Pune [ITA No. 301/PUN/2023 dated on May, 16, 2023] allowed the depreciation or other expenses on maintenance of the vehicles used by the director employees by treating it business expense of the company.

Citation :
ITA No. 301/PUN/2023 dated on May, 16, 2023

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1 Year PLAN - Rs.~~1999~~

1799

(Excl. of GST ₹323)

2 Years PLAN - Rs.~~3499~~

3149

(Excl. of GST ₹566)

BEST VALUE

3 Years PLAN - Rs.~~4999~~

4499

(Excl. of GST ₹809)

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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