Ltd. Vs DCIT (ITAT Delhi)No Double Taxation – Perquisites Taxed in Director’s Hands – ITAT Deletes Disallowance u/s 37During assessment, AO noted that Rs.4,00,204/- was incurred on vehicle maintenance paid to Patel Auto Services Pvt. It was demonstrated that vehicle expenses were treated as perquisites in the hands of Director, duly reflected in Form 12BA & subjected to TDS. Since the expenses were incurred wholly & exclusively for business & already subjected to tax in the hands of beneficiaries, further disallowance was unjustified. Where vehicle & club expenses are incurred for business purposes & simultaneously taxed as perquisites in the hands of Directors/employees, no further disallowance can be made u/s 37. This against the basic principles of taxation whereby only the net income i.e., gross income minus the expenditure, is taxed.