A.D. Jain, Judicial Member. - This is assessee’s appeal for assessment year 1998-99. The concise grounds are as under :—

"1.The ld. CIT(A) grossly erred, both on facts and in law, in sustaining the disallowance of SEBI turnover fees of Rs. 22,91,000 under section 43B of the Income-tax Act, 1961. In doing so, the ld. CIT(A) has failed to appreciate that provisions of section 43B of the Income-tax Act, 1961 are not applicable to SEBI turnover fees and, hence, the same is allowable on accrual basis.

2.The ld. CIT(A) grossly erred, both on facts and in law, in sustaining the addition of Rs. 24,043 out of telephone expenses and Rs. 22,383 out of car expenses. In doing so, the ld. CIT(A) has failed to appreciate that no disallowance can be made by attributing any part of the expenditure to personal expenses in case of the companies which have a separate legal entity in the eyes of law. A company is an artificial juridical person and, therefore, it would be totally imaginative to attribute any part of the expenses of the company for personal expenses.

3.Without prejudice to above, the proportion of disallowance sustained by the ld. CIT(A) on account of personal usage is too high and the