Mumbai ITAT allows Akshaye
Khanna’s claim for expenditure (depreciation, insurance expenses) on account of
speed boat owned by him for AY 2012-13, rejects Revenue’s stand that the entire
speed boat expenses were personal in nature; Notes that assessee has been
utilizing the speed boat for commuting from his house in Mumbai to his farm
house in Alibaug ,where professional activities such as reading, evaluating
stories and scripts, acting practice, speech improvements, story sessions etc.
were being carried out; ITAT equates the speed boat with a business asset,
being utilized by assessee for commutation for professional work and allows the
expenditure thereto “like any other travelling mode like motor-car etc.”; Also
observes that the speed-boat forms part of the 15% block of Fixed Assets,
thereby constituting business asset; Furthermore, ITAT observes that the
assessee had suo-moto disallowed 25% of the expenditure on estimated basis to
account for personal element / usage.:ITAT
No comments:
Post a Comment