TaxTMI 
TaxTMI 
2017 (5) TMI 107
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....s and circumstances prevailing in the case and as per provisions and scheme of the Act it be held that, the disallowance/addition of Rs. 1,33,275/- on account of expenses claimed under section 37(1), that of Rs. 5,62,761/- on account of expenses claimed under section 57(iii), that of Rs. 2,66,103/- under section 14A made by the Assessing Officer and that confirmed by the Ist appellate authority is unwarranted, unjustified, contrary to the provisions of the act and facts prevailing in the case. It may further be held that no disallowance/addition is warranted in the case of the appellant. The addition/disallowance so made and confirmed by the Ld. Appellate Authority below be deleted. The appellant be granted just and proper relief in this re....
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....n of car at Rs. 3,91,850/-. The assessee explained that the cars against which depreciation, interest and repair had been claimed was purchased in the individual name of the assessee since sanction of loans in the name of a construction firm was not made by many banks. However, the cars were being used by the said partnership concern and the assessee had one more car on which no deduction was claimed. The assessee also explained the utilization of the funds received from the two persons against which interest income was claimed as deduction. The Assessing Officer observed that since the assessee has not maintained any log book of the vehicle it was difficult to verify the exact use of the vehicle for the business purpose and in the absence ....
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....qually towards earning of remuneration from partnership firm and earning of share of profit, therefore, half of the expenditure was Rs. 2,66,571/- was disallowed under section 14A of the Act. The CIT(A) allowed the claim of assessee in respect of interest on borrowed funds utilized for investment in the partnership firm. In respect of the disallowance made on interest claimed as expenditure under section 57(iii) of the Act, the CIT(A) upheld the disallowance in the absence of any direct and proximate connection between the investment made. 6. The assessee is in appeal against the order of CIT(A). 7. The Ld. Authorised Representative for the assessee pointed out that where the assessee was maintaining three cars out of which in respect....
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.... of Vishnu Anant Mahajan Vs. ACIT (Supra) while working out disallowance under section 14A of the Act, no disallowance is to be made on account of car depreciation claimed as deduction under section 32 of the Act. However, in respect of the interest expenditure on the car loans raised by the assessee there is no merit in the claim of the assessee. Accordingly, 50% of the balance expenditure is to be disallowed in the hands of assessee. In the paras hereinabove, we have already restricted the disallowance to 10% out of the total expenses for personal use and after excluding the same 50% is to be disallowed under section 14A of the Act. 12. The last issue raised by way of Ground of appeal No.1 itself is the disallowance made on account of ....