https://www.taxtmi.com/caselaws?id=792081 For a company, telephone and car expenses cannot be treated as personal expenditure merely because employees or directors may use them. A disallowance requires a factual finding that the spending lacked a business nexus, and cursory assessment findings are insufficient. Where similar disallowances had already been deleted in earlier years and there was no material change in facts, consistency supported the allowance of the claim. On that basis, the disallowance of one-sixth of the telephone and car expenses was held unjustified and the expenditure was treated as allowable business expenditure. en-us Thu, 14 May 2026 00:00:00 +0530 Fri, 22 May 2026 07:06:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=792081 For a company, telephone and car expenses cannot be treated as personal expenditure merely because employees or directors may use them. A disallowance requires a factual finding that the spending lacked a business nexus, and cursory assessment findings are insufficient. Where similar disallowances had already been deleted in earlier years and there was no material change in facts, consistency supported the allowance of the claim. On that basis, the disallowance of one-sixth of the telephone and car expenses was held unjustified and the expenditure was treated as allowable business expenditure. Case-Laws Income Tax Thu, 14 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=792081