09 March 2011
If a partner getting remuneration taxable under section 28(5), and he uses his personal car for business purposes can he claim the expenses of car against remuneration? justify with judgments
If the Income in the form of Remuneration is Taxable under business head, then any expenditure incurred to earn such an income can be claimed as a deduction under Sec 37(1).
Therefore in the above case the Car Expenditure can be Claimed on a Proportionate basis. However if the same car expenses was claimed while assessing Income of the Partnership, then it cannot be claimed under while assessing the partner's income.
CAclubindia
