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2017 (6) TMI 281 - AT - Income TaxDisallowance u/s. 14A r.w.r. 8D - computation of claim - Held that:- Perusal of the profit and loss account would show that the assessee has incurred expenditure towards salaries to the tune of ₹ 84,000/- only. Administrative expenses incurred by the assessee consisted of, inter alia, freight forwarding expenses of ₹ 1.60 lakhs and loss on investment of ₹ 1.90 lakhs. If we exclude both these items, total expenses incurred by the assessee on account of salaries and administrative expenses worked out to around ₹ 96,000/- only. Sales turnover reported by the assessee was ₹ 2.57 crores and hence the above said expenditure of ₹ 96,000/- might relate entirely to business activities. Under these set of facts, we are of the view that there is no requirement for making any disallowance u/s. 14A of the Act and hence we agree with the view taken by the learned CIT(A) on this issue. Accordingly, we uphold his order. - Decided against revenue
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