2026 (3) TMI 1267

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....") and relates to Assessment Year (A.Y.) 2023-24. 2. Ground No.1 raised by the assessee reads as under: "1. The Ld. CIT(A) erred in law and on facts in upholding the disallowance of Rs 4,50,010 made by the Ld. AO, comprising car depreciation of Rs 3,48,737, car loan interest of Rs 74,650 and vehicle insurance of Rs 26,623, by treating the same as personal in nature, despite the appellant's contention that the expenditure was incurred wholly for business nexus/usage for firm-business purposes and is allowable under the Act." 3. The assessee in the above ground has challenged the confirmation of disallowance of Rs.4,50,010/- pertaining to expenses relating to the vehicle owned by it, comprising of car depreciation, car loan....

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....e the expenses to have been incurred wholly and exclusively for the business of the assessee. The assessee, in the present case, has failed to discharge his onus. At the same time, even the Revenue has not made out the case that the personal car of the assessee was not used by the assessee in the business carried out in the partnership concern. In view of the same, to meet the interest of justice, I hold that the car owned by the assessee must have been used though partially for carrying out the business of the assessee in the partnership concern and, therefore, I consider it just and reasonable to allow 60% of the total expenses so incurred by the assessee. The remaining 40% are accordingly treated as not allowable. 5. Ground No.1 of ap....