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Issues Involved:
The judgment involves issues related to additions made by the Assessing Officer on various grounds such as fees paid for appeal to ITAT, interest paid for car loans, bonus paid to employees, payment of professional fees, vehicle maintenance expenses, depreciation on car, and presumed interest on a loan given by the assessee to his father. Fees Paid for Appeal to ITAT: The appellant challenged the addition of Rs. 10,000 as fees paid for appeal to ITAT, arguing that it was related to business and not personal expenditure. The Tribunal allowed this ground as the payment was made for business purposes. Interest Paid for Car Loans, Vehicle Maintenance Expenses, and Depreciation on Car: The appellant contested the additions of Rs. 69,113 for car loan interest, Rs. 21,971 for vehicle maintenance, and Rs. 1,04,595 for car depreciation. The Tribunal partially allowed these grounds, disallowing a portion of the claims due to potential personal use. Bonus Paid to Employees: Regarding the addition of Rs. 76,267 for bonus paid to employees, the Tribunal allowed Rs. 7,300 as it met the criteria under section 43B read with section 36 of the IT Act. However, Rs. 14,100 was disallowed due to lack of evidence of salary payment to the employees. Payment of Professional Fees: The appellant disputed the addition of Rs. 8,000 and Rs. 5,000 for professional fees, arguing they were for business purposes. The Tribunal allowed these grounds, stating the payments were not personal in nature. Presumed Interest on Loan to Father: The addition of Rs. 2,83,500 as presumed interest on a loan given by the assessee to his father was contested. The Tribunal ruled in favor of the appellant, stating it was not a case of revocable transfer of asset and the provisions of section 61 were not applicable. Conclusion: The Tribunal partly allowed the appeal of the assessee, considering the nature of expenses and payments in relation to business activities. The judgment was pronounced on 4th May, 2010.
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