1977 (10) TMI 44

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... personal conveyance. The total expenditure on the car has been Rs. 5,642 approximately. The disallowance works out to Rs. 2,821 only i.e. less than Rs. 250 per month. The user of the car for the personal purposes of the partners has not been denied. In the circumstances, the disallowance of Rs. 2,821 does not appear to us to be excessive. We, therefore, refuse to interfere, with the orders of the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... hould, therefore, have been allowed as a legitimate business expenditure. The learned Departmental Representative urged that the expenditure in question was borne by the assessee not as a trader, but as a matter of penalty and that, therefore, it was not allowable. 3. After carefully examining the facts of the case, we are of the opinion that the payment in question is not by the assessee to th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... On behalf of the Department, the order of the learned AAC is supported. 5. In our opinion, the disallowance made by the learned AAC is reasonable. The payments are not verifiable and, therefore, the learned AAC is justified in resorting to estimating the expenses, which could in the nature of the assessee's business be related to the business needs. His estimate being bona fide is hereby susta .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X