https://www.taxtmi.com/caselaws?id=64535 Where a company incurred car expenses and the AO disallowed a portion alleging non-business use by directors, the ITAT held that a company's juristic personality is distinct from its directors; therefore, directors' use of company cars cannot, by itself, be treated as the company's "non-business" use so as to warrant disallowance under s. 37(1). At most, any personal element is assessable as a perquisite/extra remuneration in the hands of the directors, not as a disallowance in the company's computation. Further, restriction under s. 38(2) applies to current repairs, insurance and depreciation, not running expenses. Revenue's appeal was dismissed and the CIT(A)'s deletion of the disallowance was upheld. en-us Tue, 28 Dec 1999 00:00:00 +0530 Thu, 01 Jan 2026 19:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64535 Where a company incurred car expenses and the AO disallowed a portion alleging non-business use by directors, the ITAT held that a company's juristic personality is distinct from its directors; therefore, directors' use of company cars cannot, by itself, be treated as the company's "non-business" use so as to warrant disallowance under s. 37(1). At most, any personal element is assessable as a perquisite/extra remuneration in the hands of the directors, not as a disallowance in the company's computation. Further, restriction under s. 38(2) applies to current repairs, insurance and depreciation, not running expenses. Revenue's appeal was dismissed and the CIT(A)'s deletion of the disallowance was upheld. Case-Laws Income Tax Tue, 28 Dec 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64535