9911796707
TMI Blog2021 (12) TMI 694X X X X Extracts X X X X X X X X Extracts X X X X ..... does not have application to the facts of the instant case. Hence, the addition made by the A.O. and sustained by the CIT(A) is deleted. - Decided in favour of assessee. Disallowance of depreciation on motor car and revolver - Disallowance of interest on car loan - business v/s personal expenses - claims made by the assessee was disallowed by the A.O. by holding that these are personal in nature - HELD THAT:- AR during the course of hearing had fairly submitted that the assessee did not place necessary evidences for claiming depreciation and interest before the Income Tax Authorities. Even before the ITAT, no evidence are placed on record for claiming deduction / disallowance. Hence, the claim of deduction of depreciation and intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness partners to invest in hospital, where he is one of the Directors and in return promised to allot shares to them. As the hospital was not running well, the assessee could not repay the loan nor allot shares in their name. It was stated that the lenders filed complaints / petition against the assessee before Court. However, the assessee stated before the A.O. that he would try to furnish the confirmation. The assessee appeared on 23.03.2015 and furnished few confirmations. On verification of confirmations furnished, it was noticed by the A.O. that the assessee could not produce confirmation to the extent of ₹ 3,18,11,898. It was further noticed by the A.O. that the confirmations produced by the assessee did not contain PAN to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the books of account. Further, it was submitted that the assessee has not derived any benefit on such liability since the liability is on account of loans obtained, and therefore, the provisions of section 41(1) does not have application. In support of the contentions of the assessee, the learned AR relied on the following judicial pronouncements:- (i) Pr.CIT v. B.T.Nagraj Reddy in ITA No.791 of 2018 dated 01.04.2019 (Karnataka HC) (ii) CITv. Sugauli Sugar Works Pvt. Ltd. (1991) 236 ITR 518 (SC) (iii) CIT v. Alvares Thomas (239 Taxman 0456 (Kar.) (iv) Pr.CIT v. Ramgopal Minerals (246 Taxman 0267) (Kar.) (v) CIT v. Smt.Sita Devi Juneja 325 ITR 593 (P H) (vi) Brothers Pharma (P) Ltd.v. ITO (2015) 174 TTJ 07 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd ₹ 3,94,623 8. The assessee had claimed depreciation on revolver and motor cars amounting to ₹ 8,35,388. The assessee has also claimed interest on car loans to the extent of ₹ 3,94,623 totaling to ₹ 12,30,011. The claim made by the assessee of depreciation and interest on car loan was disallowed by the A.O. by holding that these are personal in nature. The view taken by the A.O. was confirmed by the CIT(A). 9 Aggrieved, the assessee has raised this issue before the Tribunal. 10 We have heard rival submissions and perused the material on record. The learned AR during the course of hearing had fairly submitted that the assessee did not place necessary evidences for claiming depreciation and interest before t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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