TMI Blog2019 (3) TMI 691X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee. - ITA No. 5943/Mum/2017 - - - Dated:- 28-2-2019 - Sri Mahavir Singh, JM And Sri G Manjunatha, AM For the Appellant : Shri Nitesh Joshi, AR For the Respondent : Shri Vijay Kumar Jaiswal, DR ORDER PER MAHAVIR SINGH, JM: This appeal filed by the assessee is arising out of the order of Commissioner of Income Tax (Appeals)-52, Mumbai [in short CIT(A)], in CIT(A)-52/IT/AC-CC-4(2)/126/2015-16 vide order dated 06.06.2017. The Assessment was framed by the Dy. Commissioner of Income Tax, Centre Circle-4(2), Mumbai (in short DCIT/ITO/ AO ) for the A.Y. 2013-14 vide order dated 19.10.2015 under section 143(3) of the Income Tax Act, 1961 (hereinafter the Act ). 2. The only issue in this appeal of asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 006 has already been added to the income during computation of income and accordingly requested that the disallowances should be restricted to ₹ 7,01,959. The contention of the assessee is considered and acceptable. Aggrieved, assessee preferred the appeal before CIT(A), who also confirmed the action of the AO. Aggrieved, now assessee is in second appeal before Tribunal. 4. Before us, the learned Counsel for the stated that the company has booked the following administrative expenses in its profit and loss account for the FY 2012-13. The learned Counsel for the assessee further stated out of the above expenses, the assessee company has already disallowed the following expenses in its computation of income for the FY 2012-13 re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Share of loss from partnership firm 1,54,010.00 Total 433,690.00 5. The learned Counsel for the assessee explained that the assessee company has incurred only those expenses which will specific in nature and not incurred for the purpose of earning of exempt income like audit fee, filing fee, business support fee, professional fees, professional fee and legal fee. He stated that the assessee company has rightly disallowed a sum of ₹ 33,315/- in its computation being expenses relatable to exempt income. The learned Counsel for the assessee argued that that working of disallowance under Rule 8D(2)(iii) of the Rules by the AO clearly shows that it exceeded not onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re confronted to the learned Sr. Departmental Representative he only argued that the computation under Rule 8D is mandatory. 7. After hearing both the sides and going through the facts as narrated above, we find that none of the expenses above stated have nexus that the exempt income rather all these are related to business income. The assessee suo moto has disallowed a sum of ₹ 33,815/- relatable to the exempt income which according to us is quite reasonable. Even otherwise, the issue is covered by the Tribunal s decision as assessee s own case for AY 2011-12, respectfully following the same and in given facts and circumstances, we delete the disallowance. Hence, we allow the appeal of the assessee. 8. In the result, the appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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