https://www.taxtmi.com/caselaws?id=64391 The Appellate Tribunal ITAT DELHI-D ruled in favor of the assessee, holding that the purchase of a scooter for business purposes did not constitute 'expenditure' under section 40A(3) of the Income-tax Act, 1961. The Tribunal emphasized that the provision aimed to prevent artificial reduction of tax liability through excessive payments and should not apply to capital expenditure. Consequently, the disallowance of depreciation on the scooter purchase exceeding Rs. 2,500 made in cash was deleted. en-us Wed, 29 Sep 1982 00:00:00 +0530 Mon, 07 Feb 2011 16:08:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64391 The Appellate Tribunal ITAT DELHI-D ruled in favor of the assessee, holding that the purchase of a scooter for business purposes did not constitute 'expenditure' under section 40A(3) of the Income-tax Act, 1961. The Tribunal emphasized that the provision aimed to prevent artificial reduction of tax liability through excessive payments and should not apply to capital expenditure. Consequently, the disallowance of depreciation on the scooter purchase exceeding Rs. 2,500 made in cash was deleted. Case-Laws Income Tax Wed, 29 Sep 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64391