Vehicle expense disallowance for alleged personal use was deleted where no specific evidence supported section 40(c) relief denial.

Vehicle expense disallowance for a company could not be sustained where it rested only on a broad allegation of personal use of one car and a repeated assumption that the claim was disallowable as before. In the absence of specific material for either assessment year, the appellate restriction lacked adequate evidentiary support and did not establish that the expenditure fell within the statutory disallowance under section 40(c) of the Income-tax Act, 1961. The disallowance was therefore deleted for both years.

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Issues: Whether the disallowance sustained out of vehicle expenses for the company was justified under section 40(c) of the Income-tax Act, 1961.

Analysis: The assessee was a company, and the disallowance had been sustained on a broad assertion of personal use of one car and on the footing that the claim was disallowable "as before". No specific material was brought to justify the disallowance on the facts of either assessment year. The restriction made by the appellate authority was also not founded on adequate evidence to support a finding that the expenditure attracted the statutory disallowance.

Conclusion: The disallowance was not sustainable and was deleted for both assessment years.

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