TMI Blog2018 (6) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... m of expenditure which is wholly exclusively utilized for the earning of above income are allowable. AO has disputed the genuineness of the expenses, therefore, we are of the opinion that the assessee should not be deprived to claim the addition if allowable. Accordingly, we direct the AO to verify the expenditure as claimed on the business income Charging of interest u/s.234A & 234B which is consequential, and the AO is directed to calculate the interest u/s.234A & 234B of the Act as per the law laid down by the Hon’ble jurisdictional High Court in case of Ajay Prakash Verma [2013 (1) TMI 140 - JHARKHAND HIGH COURT] - ITA No.63/Ran/2017 - - - Dated:- 30-5-2018 - SHRI N.S.SAINI, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given in the case of Narayan Swedeshi Weaving Mills vs CIT (26 ITR 765 SC). The above case was not related to the Income Tax Act rather it was case of Excess Profit tax Act. The finding was given by Hon'ble Apex Court in this case in the year 1954 i.e. before enactment of present Income Tax Act,1961. As such finding of Ld. C.I.T.(A) was totally wrong, unjustified and illegal. 5. For that the Ld. C.I.T(A) was not justified for not allowing expenses of ₹ 4,14,420/- claimed under different heads deducted from business income received as remuneration and interest received from partnership firms. The expenses were fully reasonable and related with earning of appellant's business income. As such the order passed by Ld. C. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f ₹ 5,14,424/-. The AO also retained the addition of ₹ 34,835/- made during the course of assessment u/s.143(3) of the Act was made and assessed the total income at ₹ 11,07,630/- and passed order u/s.147/143(3) of the Act, dated 16.11.2015. 5. Aggrieved by the assessment order, the assessee has filed an appeal with the CIT(A). In the appellate proceedings the assessee argued the grounds and reiterated the submissions made before the AO. The CIT(A) after considering the submissions of assessee and the findings of AO, dismissed the appeal of the assessee. 6. Aggrieved by the order of CIT(A), the assessee has filed an appeal before the Tribunal. 7. Ld. AR before us submitted with respect of ground No.3 4 that the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and further in respect of second claim of income from partnership firm M/s Lalita Construction, ld. AR substantiated with income tax return and also the profit and loss account, partner s remuneration and share of profit. We found strength in the arguments of ld. AR and also on perusal of the Section 28(v) of the Act which specifically mentions that the chargeability of interest income and the remuneration of the partners which reads as under :- 28. The following income shall be chargeable to income-tax under the head Profits and gains of business or profession ,- (v) any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by, a partner of a firm from such firm : Provided that w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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