14 March 2016
To save road tax and cost of insurance, a Company purchases Vehicle in name of Director. Will Depreciation be allowed u/s 132 on such vehicle purchased in name of Company?
14 March 2016
Where beneficial ownership is not disputed depreciation is allowed to claim , it is taxpayer who should prove car was used for business purposes only.
Have a look at Mumbai bench of incometax appealeate tribunal order in case of DhimantMehtaComputingSolutionsPrivateLimited
I suggest to pay insurance by company which may served as proof of benificial ownership
CAclubindia
