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TMI Blog2013 (12) TMI 1407X X X X Extracts X X X X X X X X Extracts X X X X ..... e against the order of the ld. C.I.T.(A)- VIII, Kolkata in Appeal No.311/CIT(A)-VIII/Kol/08-09 dated 20.01.2012 for assessment year 2006-07. 2. In the Revenue's appeal the Revenue has raised the following grounds :- "1. That on the facts and circumstances of the case and in law, the ld.CIT(A) erred in allowing relief to the assessee u/s 37(1) of the I.T.Act. Whereas AO was correct by disallowing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d "profit on sale of investment" as also interest and dividend income the AO was of the view that such huge expenditure was not called for. It was the submission that on appeal the ld. CIT(A) had deleted part of the expenditure which had been disallowed by holding that the said expenditure was allowable u/s 37(1) of the Act being wholly and exclusively for the purpose of business. It was the submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is a company and the income of the assessee is assessed under the head "business income" then the expenditure incurred by the assessee company in the course of its business cannot be disallowed. A perusal of the assessment order clearly shows that the disallowance of the expenditure is not on account of non verifiability of the expenditure. The AO has only disallowed these expenditures because he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d is in the business of making investments the income from some of which are exempt from tax. The fact that the AO and the ld. CIT(A) have accepted the fact the assessee is having business income and this fact has not been disputed by the revenue, we are of the view that the findings of the ld. CIT(A) in deleting the disallowance is on right footing and does not call for any interference. In the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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