1977 (11) TMI 79

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..... mited company running a hotel called, "Rajdoot" inDelhi. It maintained a car and incurred a total expenditure of Rs. 7,098. The ITO, without assigning any reasons except vaguely saying that the car was not wholly used for the purpose of the business disallowed Rs. 1,775 which came to 1/4th of the total claim. On appeal, the AAC sustained the disallowance. It is now pointed out that the car was use .....

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..... nds of the assessee company on that ground because in so far as the assessee company is considered in its eye the entire expenditure was for the purpose of the business. We agree with this contention and hold that these was no justification for the disallowance of any sum as relating to the personal user or non-business user of the car. We, therefore, delete this disallowance.
Case laws, Decis .....

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