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TMI Blog2000 (4) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... business. The AO, therefore, calculated interest @18 per cent on the said sum of Rs. 1,75,122 which worked out to Rs. 26,253. The AO disallowed the same out of assessee's claim for interest expenditure. The CIT(A) deleted the same on the ground that the assessee had purchased the plot from UIT in auction in asst. yr. 1982-83. This was a residential plot and the assessee did not get permission for conversion into a commercial plot. The investment in this plot was made out of capital of the partners. The capital of the partners as on 1st April, 1987 was Rs. 6,81,657 and it was Rs. 7,36,868 on 31st March, 1988. There was no nexus between money paid for purchase of the plot with the funds borrowed on interest. The CIT(A) deleted the disallowanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsive tour. The acquisition of the new car was necessary for purpose of assessee's business. The motor cycle was used by the employees of the firm. The CIT(A) after considering the entire material and submissions made on behalf of the assessee held that the car was purchased for purposes of business and directed the AO to allow the entire expenditure. 6. The learned Departmental Representative relied upon the reasons given in the assessment order. 7. I have considered the submissions made by the learned Representatives. It is the trader's decision as to whether they should purchase a new car or not for their business purposes. The AO cannot substitute his decision that purchase of new Maruti car was not necessary for the assessee's busi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e CIT(A) confirmed the disallowance of Rs. 4,025 incurred for purchase of those silver plates. The balance expenditure was allowed as it was incurred for expanding the existing business and bringing to the notice of the concerned persons the shifting of the appellant's premises to a new site. I do not find any infirmity in the view so taken by the learned CIT(A). I hold that the deletion of the disallowance to the extent of Rs. 32,733 is perfectly valid and justified. This ground is also, therefore, rejected. 10. Ground No. 4 relates to the deletion of the disallowance of Rs. 20,700 made in respect of commission paid to late Shri Tulsi Das. The AO disallowed the said commission as according to him the commission bills pertained to asst. y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of the Department that signatures on vouchers are not of Shri Tulsidas. After his death, the assessee was not in a position to produce the pass book of Shri Tulsidas. This cannot be a ground for disallowance of payment made to him during his lifetime. The remaining amount was paid to his wife Smt. Laxmi Devi, as is evident from the photocopies of the vouchers and her application submitted at pp. 31-32 of the paper book. 13. In my view, the learned CIT(A) has deleted the said disallowance after a careful and deep scrutiny of all the relevant documents. The deletion of the said disallowance is, therefore, held to be perfectly valid, reasonable and justified. Hence ground No. 4 of Revenue's appeal is dismissed. 14. The next ground rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he VO had allowed only 7.5 per cent. The difference comes to Rs. 16,958. The 4th difference relates to covered area of showroom. According to the assessee, it was 274.48 sq. mts. as against 289.8 sq. mts. computed by the VO. Deduction on this count comes to Rs. 16,255. The difference in cost of services as per the actual cost and as estimated by the VO comes to Rs. 54,718. The last item of difference relates to inferior specifications for the construction of Chowkidar's room, bathroom, toilet blocks. Such a difference was estimated at Rs. 14,207. The aggregate amount of such deductions referred to on pp. 11 and 12 of the order of the learned CIT(A) comes to Rs. 2,28,070. The CIT(A) also relied upon the judgment of Hon'ble Rajasthan High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. The AO disallowed Rs. 25,645 debited under the head 'new tractor expenses'. The assessee claimed expenses of Rs. 68,788 under the head 'new tractor expenses'. It was stated on behalf of the assessee that under the agreement with TEFE, the assessee had to supply the tractors in perfect road-worthy conditions after trial. The assessee had to replace all the defective parts before its delivery to the buyers. The AO disallowed expenses on tyre, front-replacement, transmission case, fuel pump, etc. amounting to Rs. 25,645. The assessee explained before the CIT(A) that out of Rs. 25,645, three amounts aggregating to Rs. 10,125 was credited in this account and, therefore, no deduction in respect of Rs. 10,125 was claimed. The balance amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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