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2019 (7) TMI 1860 - ITAT BANGALOREExpenses claimed u/s 57 - various expenses incurred by the assessee viz., PMS charges, professional fees salary is integral to the investment activity undertaken by him and to earn the income returned in the return of income for the previous year - admission of additional evidence of assessee accepted - HELD THAT:- PMS charges - There is no mention about any investment in foreign securities in this PMS agreement. This is also seen that as per the balance sheet, the investment in Indian companies is only about securities and not any bank deposit, income of which is taxable. Hence on the entire investment of the assessee through PMS, the only income which can be earned is dividend income or capital gain and none of these two incomes is taxable under the head ‘Income from other sources’ and therefore, such expenses is not allowable u/s. 57(iii) of the IT Act. Hence, the additional evidence filed by the assessee is not rendering any help to assessee in the present case. The second major head of expenses is Salary and bonus - the narrations given in the ledger account, the name of the employees is given and, there is no such detail as to what work is entrusted to these employees and whether the work entrusted to these employees is regarding earning of income taxable under the head ‘Income from other sources’. Hence, this expenditure on Salaries and bonus is not correlated by assessee with earning of income taxable under the head ‘Income from other sources’ and therefore, this expenditure of Salaries and bonus is also not allowable u/s. 57(iii) of the IT Act. Professional charges - only detail available is this as to whom it was paid and for which period. There is no such detail available as to whether such professional charges is in respect of earning of income taxable under the head ‘Income from other sources’ and therefore, even after considering the additional evidence, these expenses of Professional charges also cannot be held to be allowable u/s. 57(iii). Hence, it is held that these three expenses i.e. PMS charges, Salaries and bonus and Professional charges are not allowable u/s. 57(iii) of the IT Act and the remaining expenses is very small and less than the amount of expenses already allowed by the AO.- Decided against assessee.
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