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2017 (4) TMI 238 - ITAT CHENNAIPooja expenditure - Held that:- AO opined that the pooja expenses cannot be treated as business expenditure and could be only considered as personal expenditure. Therefore he disallowed the pooja expenses of ₹ 21,594/- and added to the income of the assessee. The Ld. CIT(A) also confirmed the addition because the assessee had not furnished any details with respect to pooja expenses in order to prove that it is not personal expenditure. We do not subscribe to this view of the Revenue authorities. In every business establishment it is customary to follow certain religious procedures in order to please the “Gods” for prosperity and development. Considering the nature and the turnover of the business, we are of the considered view that the amount spent by the assessee as pooja expenditure is quite meager and reasonable. Therefore, we hereby direct the Ld. AO to delete the addition made towards pooja expenditure. Invoking of Section 14A and Rule 8D - Held that:- We also make it clear that for the investments made in mutual funds, provisions of Section 14A read with Rule 8D will be applicable since the assessee would incur some expenditure at least for the decision making process as to in which mutual fund the investment has to be made and at what point of time exit from such funds. It is ordered accordingly.
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