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The Ahmedabad Bench of the Tribunal in the case of DCIT v. Gujarat Filaments Ltd. (108TAX287) held that the assessing officer is not competent to make a disallowance out of telephone /vehicle expenses incurred by the directors in as much as in the case of a limited company which is an artificial juridical person there could be no personal user. The Bench followed the view in their earlier decision in the case of Banco Products ( India ) Ltd. v. DCIT (63ITD370).


However when it comes to travel expenses the assessee is expected to demonstrate with material to suggest that such expenses are not incurred for personal purpose vide 52ITR (Trib) 274.

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