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Issues:
1. Depreciation claim on a car disallowed by the Assessing Officer. 2. Failure to provide opportunity to prove business use of the car. 3. Discrepancies in the assessment of withdrawals for car expenses. 4. Appellate Authority's failure to properly appreciate facts of the case. Analysis: 1. The appeal was against the Assessing Officer's decision to disallow depreciation on a car claimed by the assessee in the original income tax return for the assessment year 1984-85. The Assessing Officer concluded that the car was not used for business purposes based on the lack of expenditure shown in the assessee's accounts in the relevant firms. The Appellate Authority upheld this decision, stating that the withdrawals made by the assessee were not convincingly linked to the car's expenses. However, the Tribunal found that the authorities did not properly consider the evidence and directed a fresh determination, emphasizing the need to assess the magnitude of household expenses and the availability of funds for car use. 2. The assessee argued that the Assessing Officer did not allow an opportunity to prove the business use of the car. The Tribunal agreed, noting that the authorities did not adequately assess the evidence presented by the assessee regarding the withdrawals made for car expenses. The Tribunal highlighted the importance of considering the entirety of the assessee's financial transactions to determine the validity of the depreciation claim. 3. The discrepancies in assessing the withdrawals made by the assessee for car expenses were a crucial point of contention. The Appellate Authority and the Assessing Officer both focused on specific withdrawals without considering the overall financial activities of the assessee. The Tribunal emphasized the need to evaluate the entirety of the financial records to establish a clear connection between the withdrawals and the car's usage for business purposes. 4. The failure of the Appellate Authority to properly appreciate the facts of the case was a significant issue raised by the assessee. The Tribunal agreed that the Appellate Authority did not adequately analyze the evidence and made a decision without fully considering the financial transactions and circumstances of the assessee. The Tribunal set aside the Appellate Authority's order for a fresh determination, emphasizing the importance of a thorough assessment of all relevant factors before reaching a conclusion on the depreciation claim.
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