9911796707
TMI Blog1981 (2) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... he purpose of business. He, therefore, disallowed the entire claim for depreciation as made by the assessee. 3. Being aggrieved, the assessee carried the matter in appeal before the Commr. (Appeals) who restricted the claim for deduction of depreciation to 75 per cent of the total claim as made by the assessee. 4. Being aggrieved, the assessee has come up in appeal before us. The ld. Rep. of the assessee contended that there was no question of the car being used for personal purpose by the assessee which is a limited Company. It was next pointed out that there were two directors of the assessee Company who had maintained their own cars and, therefore, there was no question of using the office car for non-business purposes. He, therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . (Appeals) upheld the decision of the ITO. Hence this appeal. 7. For the reason set out in para 5 above we hold that the disallowance of motor car expenses and depreciation could be restricted to 1/10th of the total claim as made by the assessee 8. The next ground for asst. yr. 1977-78 relates to disallowance of interest under s. 40A(8) of the Act. The ITO while taking the assessment inter alia disallowed 15 per cent of a sum of Rs. 23,846 being interest paid by the assessee on deposits under provisions of s. 40A (9) of the Act. The ITO, however, has not given any reasons in support of this disallowance. 9. The Commr. (Appeals) in appeal upheld decision of the ITO and rejected the claim as made by the assessee that it was an inves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resaid was not justified. 11. In view of the fact that the assessee's business is of developing land, which fact cannot be disputed on material available before us, we are of the opinion that the assessee company's case would fall under the above explanation and, therefore, the disallowance of interest at 15 per cent made by the authorities below was not justified. The said disallowance is, therefore, deleted. 12. We now turn to the appeal relating to asst. yr. 1978-79. The first question which arises for consideration relates to disallowance of depreciation on car at Rs. 30 per cent of the total claim as made by the assessee. For the reasons given in para 5 above, we hold that disallowance of depreciation would be restricted to 1/10t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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