TMI Blog2012 (3) TMI 509X X X X Extracts X X X X X X X X Extracts X X X X ..... r there is any nexus with the amount claimed as exempt income. Moreover, the disallowance made is more than the expenditure claimed in the P&L account. Therefore, we are unable to uphold the orders of AO and Ld. CIT(A) on this issue. Considering that an amount of ₹ 77,63,301/- was earned by way of dividend, a token amount of ₹ 5,000/- was only considered as expenditure incurred towards earning exempt income, out of the total claim of expenditure in the P&L account. Accordingly, disallowance is restricted to an amount of ₹ 5,000/-. The AO is directed to allow the balance expenditure as claimed. The grounds raised by the assessee are accordingly, partly allowed. - ITA No.3464/Mum/2011 - - - Dated:- 2-3-2012 - SHRIB. RAMA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submission of the Ld. Counsel that the company did not incur much expenditure while offering the income and filed Profit Loss account to submit that except donation of ₹ 10,00,000/- and professional fees of ₹ 2,89,575/- the balance of expenditure is very small as under: Expenditure Current year Rupees Bank charges 55,183/- Filing fees 2,050/- Audit fees 5,000/- Tax Audit fees 5,000/- Amortisation of preliminary Expenses 5,900/- Interest on delayed payment of service tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us with the amount claimed as exempt income. Moreover, the disallowance made is more than the expenditure claimed in the P L account. Therefore, we are unable to uphold the orders of AO and Ld. CIT(A) on this issue. Considering that an amount of ₹ 77,63,301/- was earned by way of dividend, a token amount of ₹ 5,000/- was only considered as expenditure incurred towards earning exempt income, out of the total claim of expenditure in the P L account. Accordingly, disallowance is restricted to an amount of ₹ 5,000/-. The AO is directed to allow the balance expenditure as claimed. The grounds raised by the assessee are accordingly, partly allowed. 7. In the result, appeal filed by the assessee is partly allowed. Order pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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