Vehicle expenses and depreciation for cars registered in a director's name were restricted by 25% because no logbook or equivalent evidence excluded personal use and the company funded loan margin money; prior-year non-disallowance did not create res judicata in income-tax proceedings. Interest disallowance on borrowings was deleted because the interest-free advance's source and the loans' use, repayment and purpose had been explained, while the assessment lacked reasoned consideration. Rent paid for the director's residence remained deductible, with the accommodation taxable as a perquisite in the director's assessment. Penal interest for delayed loan instalments remained deductible as compensatory contractual expenditure, not an offence-related or legally prohibited payment.
Vehicle expenses and depreciation for cars registered in a director's name were restricted by 25% because no logbook or equivalent evidence excluded personal use and the company funded loan margin money; prior-year non-disallowance did not create res judicata in income-tax proceedings. Interest disallowance on borrowings was deleted because the interest-free advance's source and the loans' use, repayment and purpose had been explained, while the assessment lacked reasoned consideration. Rent paid for the director's residence remained deductible, with the accommodation taxable as a perquisite in the director's assessment. Penal interest for delayed loan instalments remained deductible as compensatory contractual expenditure, not an offence-related or legally prohibited payment.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4910 
