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TMI Blog1986 (11) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... pares will with the gross point of 5.63 per cent for the last year on a turnover of Rs. 1,70,00,000. He submitted that in that earlier year similar trading additions were sought to be made which were deleted in appeal against which the Department did not prefer any appeal. On this issue the plea of the Department was that there was no stock register maintained and therefore, addition was called for On this issue, our considered opinion is that the gross profit rate compares adequately with the gross profit of the earlier year and such small trading addition could have been well avoided. We, therefore, delete the trading addition. 3. The next item is in respect of disallowance of Rs. 2,000 out of shop expenses which according to the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e made out of the expenses incurred on vehicle. The items cannot be said to be covered under s. 40(b) and, therefore, they cannot be treated as payments to the partner. The plea, therefore, was that the disallowance should be deleted. On this issue that the view that has been consistently followed is that the expenses that are wholly and exclusively laid out for the purpose of business alone is to be allowed and the use of the vehicle of the firm by the partners for their personal purposes cannot be said to be usage of the vehicle for business purposes. So say that the partners should be equated with the employees who are allowed such personal usage would not be proper as an element of perquisite would be added in the hands of the employees ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 per cent. The issue of depreciation was considered by the CIT (A) in the case of Manoj Textiles wherein the CIT(A) vide his order dt. 13th Aug., 1983 had held that the generator being a renewable energy device, depreciation of 30 per cent is allowable. The Department relied on the order of the authorities below. On this issue as rightly observed by the CIT(A) in the case of Manoj Textiles, the generator would clearly fall in cl. III-D10axiii of Appendix-1 of Part-I of the Rules and the rate of depreciation is 30 per cent on the generator. We allow this ground of the assessee. 8. The assessee has taken three more grounds regarding levying of interest under ss. 215, 139(8) and deduction under s. 80G and prayed that direction may be given ..... X X X X Extracts X X X X X X X X Extracts X X X X
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