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2011 (3) TMI 89 - AT - Income TaxDisallowance u/s 14 A - The Assessing Officer held that in the absence of specific details of expenses incurred to earn such income, the total expenses to be disallowed in the same ratio which profit share in the firm bears to the total receipts from the firm i.e. on account of profit share as also remuneration - Held that: - Depreciation is admittedly in the nature of allowance and, therefore, it cannot be subject matter of disallowance under section 14A, which must remain confined to expenditure incurred by the assessee Similarly, as far as deduction under section 80D is concerned, it cannot be subject matter of disallowance under section 14A either - The deduction under section 80D is not admissible because it is an expenditure for the purpose of earning an income but because, by virtue of specific provision under section 80D, payment of premium of health insurance, which is inherently personal expenses of the assessee, is admissible as deduction. This deduction cannot, therefore, be subject matter of disallowance under section 14A. As far as question of payment of Rs 9,000 to Rotary Club is concerned, we find that deduction has been claimed under section 37(1) of the Act and, therefore, one has to proceed on the basis that these expenses are in the nature of business expenditure - disallowance under section 14A is restricted to Rs. 36,348 - In the result, appeal is partly allowed
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