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TMI Blog1991 (1) TMI 181X X X X Extracts X X X X X X X X Extracts X X X X ..... the ground that there was no proper check on these expenses and a part of them could be considered as for non-business purposes. The CIT(A), however, restricted the addition to Rs. 3,000 observing in the process that the disallowance made by the ITO was on the higher side. In maintaining the disallowance he took note of the addition of Rs. 1,000 and Rs. 2,943 made in asst. yrs. 1981-82 and 1982-83. 3. The learned counsel for the appellant at the outset stated that no part of the expenditure was required to be disallowed inasmuch a the same had been incurred strictly for business purposes. In this connection he invited our attention to the details appended at pages 4 to 6 of the paper book. He referred to the fact that the entire expendit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (hereinafter referred to as "the Association"). The ITO disallowed the claim for deduction on the ground that the same had not been incurred for "the purposes of business " and there was " no close and direct nexus between the business carried on by the assessee and the said membership fees". The CIT(A) upheld the disallowance. 6. The learned counsel for the appellant at the outset stated that the sum of Rs. 2,000 represented the Life Membership Fees paid to the said "Association" during the assessment year under consideration. According to him, the assessee was required to use his care quite regularly in the city and in adjoining districts for purposes of his business. It was the submission thereafter that the membership of "the Associa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is a necessary pre-requisite for obtaining the membership In the case of a company or a body incorporated the services are available to a nominated representative. Further more the service are available to such users whose names alongwith their respective car numbers are registered with "the Association". 9. A perusal of the pamphelt appended on the paper book shows that a member of "the Association" in addition to various other facilities would be entitled to the following : (i) "Legal Advice: Advice is available on any matter arising out of the use and ownership of a motor vehicle, such as disputes with insurance companies, liability for accidents on the road, interpretation of the taxation, traffic and other rules etc." ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Membership of the WIAA carries with it virtual membership of all Automobile Associations in India, so that wherever a member may be, the services of those Associations will be extended to him." (viii) "Taxation" All matters concerning the MV Tax, Municipal Wheel tax, Transfer of Ownership of Motor Vehicles and claims for tax refund are handled by the Association." .............................................. (ix) "Provision for Drivers: A member requiring a driver for a short period or permanently should inform the Road Service Department when one such driver if available and suitable, will be sent to him for employment" .................................................. (x) "Insurance Rebate: Members are entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X
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