TMI Blog2013 (2) TMI 739X X X X Extracts X X X X X X X X Extracts X X X X ..... atable to a taxable income, as is the undisputed position in this case, no portion of such an expense can be disallowed u/s. 14A. The allocation of general expenses vis-à-vis tax exempt income and taxable income can only be made in respect of expenditure which cannot either be wholly allocated to taxable income, then or which can not be wholly allocated to tax exempt income; the allocation can be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... That on the facts and circumstances of the case, the ld. CIT(A) erred in law in directing the Assessing Officer to work out the disallowance of expenses relating to exempted dividend income as per the method of computation shown by the ld. CIT(A) . 2. The appeal is, however, time barred by 24 days. The Assessing Officer has moved a petition seeking condonation of this delay. Having perused the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of ₹ 71,42,636/- and De-mat charges of ₹ 2,14,481/-, and the balance expenses were allocated as relating to tax exempt income in the ratio of tax exempt receipts to total receipts. On this basis, 46.68% of balance expenditure, i.e. ₹ 54,35,795/- was disallowed u/s. 14A r.w.r. 6D(iii). Aggrieved by the quantum of disallowance, the assessee carried the matter in appeal before th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rroneously taken this amount in the general allocation. I have examined the building maintenance and service expenses accounts and found that these expenses are related to earning of rent. Therefore, these expenses are not general in nature since these are attributable to a separate head of income, i.e. business income earned as rent . 4. Aggrieved by the strand so taken by the CIT(Appeals), th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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