Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 3 - ITAT MUMBAIProfits and taxable income received from firm Disallowance u/s 14A of the Act Held that:- The AO made disallowance taking into account the entire expenses debited to Profit & Loss A/c - the Assessee has received income from profession and also received remuneration from partnership firm M/s. Amarchand Mangaldas & Suresh A. Shroff & Co. - the Assessee has not incurred any expenses towards becoming partner in the firm and as such no expenses were incurred against the remuneration received/ share of profit received from the firm - Whatever expenditure is incurred is for carrying out his professional consultancy in his personal name for which Assessee was receiving a fee of Rs.1.55 crores - against the income assessee claimed expenses only of Rs.51.80 lacs which is 33.5% of professional income - assessee made capital investment of Rs.16.00 lacs by way of fixed capital in the partnership firm and has not paid any interest on borrowings for the purpose of making investment in the partnership firm - investment was made out of own funds/non-interest bearing funds which is evident from Profit & Loss A/c - interest expenditure debited to Profit & Loss A/c was in respect of car loan - thus no disallowance is warranted u/s 14A - no expenditure was claimed in Profit & Loss A/c which can be directly or indirectly attributed to earning of share of profit from the firm thus, there was no infirmity in the order of the CIT(A) Decided against Revenue.
|