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Issues Involved:
1. Disallowance of depreciation on two cars. 2. Disallowance of expenses for contribution to professional organizations and Rotary Club. Analysis: Issue 1: Disallowance of Depreciation on Two Cars The appellant, a senior advocate, maintained three cars for professional use. The AO disallowed depreciation on two cars due to the absence of a log-book. The appellant argued that all cars were used for professional purposes and the disallowance was unjustified. The CIT(A) upheld the disallowance on two cars and allowed depreciation on one car. The appellant's counsel contended that if depreciation was allowed on one car without a log-book, it should apply to all cars. The Departmental Representative argued that all cars could not be used solely for professional purposes, citing family needs. The Tribunal agreed with the CIT(A) and AO, stating that only one car could be used professionally at a time. The Tribunal differentiated the case from Capital Bus Service (P) Ltd. vs. CIT, emphasizing the need for actual usage for depreciation claims. Issue 2: Disallowance of Expenses for Contribution to Professional Organizations The appellant contested the disallowance of expenses for contributions to professional organizations and the Rotary Club, arguing they were incidental to the profession. However, no evidence was provided to establish the expenditure's professional relevance. The Tribunal upheld the disallowance, considering the lack of proof that the expenses were related to the appellant's profession. Consequently, the appeal was dismissed. In conclusion, the Tribunal dismissed the appeal, upholding the disallowance of depreciation on two cars and expenses for contributions to professional organizations and the Rotary Club. The decision was based on the lack of evidence supporting the appellant's claims and the specific requirements for claiming depreciation under the law.
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