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2015 (10) TMI 2511 - AT - Income TaxExpenditure on account of consultancy fee disallowable u/s. 14A - as observed that the assessee had considerable business income from management consultancy during the relevant year and majority of expenses were incurred by the company for earning such business income - CIT(A) deleting the expenditure on account of consultancy fee as not disallowable u/s. 14A oHeld that:- While applying Rule 8D(2)(ii), the AO should have excluded those expenses which were directly attributable to consultancy business income earned by the assessee. We find from records that the assessee filed the details of consultancy income and expenses incurred for the same before AO during the course of assessment proceeding but he has not considered the same. We further find that the dividend income amounting to ₹ 1,66,06,788/- was received by the assessee only from eight companies and dividend cheques were received though post or were directly credited to the assessee' bank account through ECS. As such no major expenses were incurred by the assessee for earning such income and collection of dividend cheque. Similarly, in respect of long term capital loss of ₹ 3,97,694/- there were only two transactions for purchase and sale of shares and two for investment and redemption of units of mutual fund which too were transacted over telephone through the broker/bank. No separate staff was employed for this purpose and extra expenses were incurred for such transactions. - Decided against revenue
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