AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 269
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.... erred in law and on facts in confirming the disallowance of vehicle running expenses amounting to Rs. 4,00,204/- though evidences placed on record. Thus, the addition made on surmises and conjectures must be deleted. 2. The learned CIT (A) erred in law and on facts in confirming the disallowance of club expenses amounting to Rs. 6,04,196/- on adhoc basis though evidences placed on record. Thus the addition made on surmises and conjectures must be deleted. 3. The first appellate authority erred in not granting any virtual hearing to the assessee before disposing off the appeal knowing well that the assessee is stationed at New Delhi and could not appear in person at Kolkata where the appeal was transferred by CPCP and the ....
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....llant. The AO has made the disallowance on the basis of the repairing bill of the car which is used by the Director of the company Sh. Anurag Dalmia. Appellant has filed the copy of form 12BA showing particulars of the perquisites, other fringe benefits or amenities and profits in lieu of salary with value thereof. It is evident from the Form 12BA that value of perquisites in the hands of the Director on account of vehicle was considered at Rs. 11,31,665/-. Since, appellant has treated the expenditure incurred on vehicle running and maintenance for the vehicle used by the Director as perquisites in his hand, no further disallowance is called for. Keeping in view the above facts, addition made by the AO at Rs. 6,00,146/- is not sustainable a....
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....s used in the heading as well as Rule 8D itself so as to cover all the investments which might generate such an income either in the present or even in future, which is not includible in total income of the assessee. Circular No.5/2014 Ministry of Finance, CBDT states that: "The matter has been examined in the Board. It is pertinent to mention that section 144A of the Act-was introduced by the Finance Act, 2001 with retrospective effect from 01.04.1962. The purpose for introduction of section 14A with retrospective effect since inception of the Act was clarified vide Circular No.14 of 2001 as under: "Certain incomes are not includible while computing the total income, as these exempt under various provisions of the Act. There have ....
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....ssessee should have earned such exempt, income during the FY under consideration. The above position is further substantiated by the language used in Rule 8D[2 (ii) & 8D (2)(iii) of the IT Rules which are extracted below: "(ii) in a case where the assessee has incurred expenditure by way of interest during the previous year which is not directly attributable to any particular income or receipt an amount computed in accordance with the following formula,, namely: A*B/C Where... B=the average of value of investment, income from which does not or shall not form part of the total income, as appearing in the balance sheet of the assessee, on the first day and the last day of the previous years; ..(i) an amount equal to one-half percent of the av....
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.... 4. Since these expenses are allowable expenditure, he prayed that the same may be allowed. 5. On the other hand, ld. DR of the Revenue relied on the findings of the lower authorities. 6. Considered the rival submissions and material available on record. We observe that assessee is incurring expenditure for the purpose of running its business and these expenditures are incurred for the benefit of employees as well as for the purpose of business. We observe that with regard to vehicle maintenance, assessee has submitted details before lower authorities that these expenditures were allowed to the employees of the assessee as prerequisites and the same were declared in Form 12BA and also the abovesaid perquisites were subject to TDS pr....