9911796707
TMI Blog2022 (5) TMI 1667X X X X Extracts X X X X X X X X Extracts X X X X ..... proper bills in respect of the traveling expenses of its employees, we find the same are merely in the nature of general observations and not a single instance of any such bill/voucher or details suffering from any infirmity had been referred to by him while making the aforesaid disallowance. Accordingly, we are unable to concur with the aforesaid reasoning of the A.O. for making the disallowance in question which thereafter had been sustained by the CIT(Appeals). As regards the observation of the A.O that the involvement of personal element in the tours and travels of the directors of the assessee company cannot be ruled out, we are unable to persuade ourselves to subscribe to the same. As the assessee before us is a company, i.e, a dist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of the considered view that now when for the reasons discussed by us hereinabove the disallowance of vehicle running and maintenance expenses had been ruled out by us, therefore, backed by the said reasoning no part of ad-hoc disallowance of depreciation on account of personal usage of the vehicles by the directors can be sustained. X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing ad hoc disallowances out of the expenditure claimed by the assessee company : Sl. No. Particulars Amount 1. Out of claim of Travelling Expenses of Rs. 14,49,603/- Rs. 1,50,000/- 2. Out of claim of communication expenses of Rs. 8,36,570/- Rs. 50,000/- 3. Out of Vehicle Running Expenses of Rs. 3,96,347/- Rs. 50,000/- 4. Out of claim of depreciation of Vehicles of Rs. 7,59,509/- Rs. 30,000/- After making the aforesaid disallowances, the A.O. vide his order passed u/s. 143(3) dated 17.02.2016 assessed the gross income of the assessee at Rs. 2,41,22,793/-, which after set-off against the brought forward losses was reduced to Rs. Nil. 4. Aggrieved, the assessee assailed the aforesaid disallowance of expenses before the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch bill/voucher or details suffering from any infirmity had been referred to by him while making the aforesaid disallowance. Accordingly, we are unable to concur with the aforesaid reasoning of the A.O. for making the disallowance in question which thereafter had been sustained by the CIT(Appeals). As regards the observation of the A.O that the involvement of personal element in the tours and travels of the directors of the assessee company cannot be ruled out, we are unable to persuade ourselves to subscribe to the same. As the assessee before us is a company, i.e, a distinct assessable entity as per the definition of "person" contemplated in Sec. 2(31) of the Act, therefore, being an inanimate person there cannot be anything personal abou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... qua incurring of running and maintenance expenses of its vehicles. In view of our aforesaid observations we vacate the ad-hoc disallowance of Rs. 50,000/- made by the A.O. 9. Adverting to the ad-hoc disallowance of Rs. 50,000/- made by the A.O. out of communication expenses of Rs. 8,36,570/-, we find that the same had been made for the reason that as per the A.O. the involvement of personal element in usage of telephones and mobiles by the assessee company cannot be ruled out. On the basis of our aforesaid observations that an assessee company is a distinct assessable entity, i.e an inanimate person, therefore, no disallowance on account of personal expenditure could have been validly made, we vacate the aforesaid ad-hoc disallowance of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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