9911796707
TMI Blog2011 (8) TMI 1368X X X X Extracts X X X X X X X X Extracts X X X X ..... lly, two questions of law are raised by the Revenue in this appeal, which read thus: "(i) Whether, on the facts and in the circumstances of the case, the Tribunal was right in allowing expenditure of Rs.15,00,000/ being membership fee of Otters Club as business expenditure, which was held by the AO as personal expenses of capital nature not allowable u/s. 37(1) of the IT Act? (ii) W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim of the assessee on the ground that the Otters Club's membership could be utilised by the assessee for personal purposes. The appeal filed by the assessee was dismissed by C.I.T.(A). 4. The I.T.A.T. has allowed the claim of the assessee by recording finding of fact that when assessee has acquired membership of two clubs, one for professional use and another for personal use, then there is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee was dismissed by C.I.T.(A). On further appeal, the I.T.A.T. allowed the claim of the assessee under rule III(2)(iid) of AppendixI of the Income Tax Rules, 1962 inserted by the Income Tax (Six Amendment) Rules. 2001 with the effect from 1st April 2002. 6. The said rule provides that a new commercial vehicle, which is acquired on or after the 1st day of April 2001 but before the 1st day ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en weight of the light motor vehicle purchased by the assessee does not exceed 7,500 kgs. In these circumstances, the finding recorded by the I.T.A.T. that the assessee is entitled to depreciation @ 50% on the BMW motor car as per rule III(2)(iid) of AppendixI of the Income Tax Rules, 1962 cannot be faulted.
9. In the result, we see no merit in the appeal. Appeal is, therefore, dismissed. X X X X Extracts X X X X X X X X Extracts X X X X
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