1979 (1) TMI 161

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....inst the share income 3/4th of the same, i.e. Rs. 17,034. The ITO allowed only Rs. 3,000 and disallowed the balance stating that no evidence was produced to show that the expenses were incurred for earning the share income. 2. In appeal, the AAC while holding that in principle motor car expenses would be admissible against the share income of it was incurred for the purposes of business, came to the conclusion that only a further amount of Rs. 500 should be allowed since expenditure for going to the place of business and residence and vice versa would not be an admissible deduction. 3. In appeal, the learned counsel for the assessee submitted that the assessee had claimed only 3/4th of the total expenditure and hence there was no warr....

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....tubes etc. The assessee admittedly had done a large amount of travelling as the various branches were located at places of some distance. By effective supervising the conduct of the business of the firm the assessee ensures that the firm makes maximum profit and consequently the assessee gets the maximum share income possible. The Supreme Court in the case of CIT vs. Ramniklal Kothari(2), after considering the earlier decision of the Court in the case of Jitmal Bhuramal vs. CIT(3), which was also one of the decisions considered by the Madras High Court in the case of Basantlal Gupta vs. CIT(1) relied on by the learned Departmental Representative, laid down the following principles ; "Where a person carries on business by himself or in pa....