TMI Blog2012 (9) TMI 1191X X X X Extracts X X X X X X X X Extracts X X X X ..... ed u/s.139(A) of the Act of ₹ 48,599/. The addition of ₹ 97,82,691/- comprised of disallowance made out of interest amounting to ₹ 93,60,788/- and from other administrative expenses amounting to ₹ 4,21,903/-. 1.02 The Learned CIT(A) did not appreciate that no disallowance was warranted u/s. 14A of the Act as the appellant has also received taxable interest income of ₹ 95,43,091/-, which was already offered to tax. Direct nexus between taxable interest income and expenses having been proved, appellant prays that no disallowance u/s. 14A was warranted as the provision of he said Section 14A are triggered only if the appellant has earned tax free income against any expenses incurred. 1.03 The Learned CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income from other source , the ground is allowed to be withdrawn. Only ground no. 1 survives for consideration. 2. We have heard Ld. Counsel and Ld. DR and perused the paper book filed. 3. Briefly stated assessee is a member of Joint Venture M/s. Ackruti SMC. It has invested in capital of Joint Venture. The break up of investment as on 31.03.2007 and 31.03.2008 is as under. Sr.No. Investments 31.03.2007 31.03.2008 1 Capital / current Account of Partnership Firm 82,654,353 86,106,854 To make investment in the JV, assessee has taken loans and is paying interest on the same. The interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Share profit from JV 71,706 Other income 95,43,091 96,14,797 Expenditure Administrative Expenses 51,047 Interest finance charges 99,77,398 Total 1,00,28,445 Profit Loss Before Tax (4,13,648) 6. The computation of income filed by assessee is as under : STATEMENT OF INCOME INCOME FORM BUSINESS: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TOTAL INCOME: (482,906) 7. As can be seen from the above details the assessee offered the interest received and claimed interest paid under the head other sources and the net loss under that head at ₹ 4,34,307/- was ignored. In addition, the entire expenditure claim (other than interest) was only ₹ 51,047/- out of which an amount of ₹ 2,448/- being filing fees was disallowed and loss claim was restricted to ₹ 48,599/- which was claimed for the benefit of carried forward loss from this year. 8. We are unable to understand how there can be disallowance of interest claimed u/s 57(iii) against income offered, u/s. 14A. Not only that when the entire expenditure cl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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