Disallowance of Car Expenses and Depreciation Overturned; Rs. 5,193 Business Expense Allowed

The disallowance made by the Income Tax Officer was deleted in relation to car expenditure and depreciation as the managing partner had already made sufficient disallowance for personal use. Additionally, the disallowance of Rs. 5,193 connected with Income-tax proceedings was also deleted as it was considered a business expenditure under section 37 of the Income Tax Act, 1961.

---

---

The appeal involved two points:
1. Car expenditure and depreciation: Disallowance by ITO was not necessary as the managing partner made sufficient disallowance for personal use. Disallowance made by ITO was deleted.
2. Expenditure connected with Income-tax proceedings: Disallowance of Rs. 5,193 was deleted as it was a business expenditure falling under section 37 of the IT Act, 1961.

---