TMI Blog2021 (3) TMI 215X X X X Extracts X X X X X X X X Extracts X X X X ..... gain of ₹ 1,53,995/- which is chargeable to tax. Likewise, assessee paid PMS fee to Trust Investment Debt of ₹ 1,27,812/- which has yielded taxable income of ₹ 6,08,676/- and thus all these expenses were incurred in relation to earning of taxable income and we find merit in the contentions of the learned counsel for the assessee that these cannot be disallowed as direct expenses relating to earning of exempt income. We are inclined to set aside the finding of learned CIT(A) on this issue and direct the Assessing Officer to delete the disallowance Disallowance being 0.5%of the average investments - Assessing Officer has simply rejected the submissions of the assessee without pointing out as to how the said submissions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax (Appeals) - 5, Mumbai (in short the CIT(A) ) pertaining to Assessment Year 2013-14. 2. The only issue raised by the assessee in the various grounds of appeal is against the confirmation of disallowance of ₹ 10,21,142/- by the learned CIT(A) as made by the Assessing Officer under Section 14A of the Act r.w.r 8D of the Rules. The facts in brief are that the Assessing Officer during the course of assessment proceedings noted that assessee has earned exempt income during the year and has not made any corresponding disallowance of expenses for earning of the exempt income. Accordingly, after issuing show cause notice to the assessee, the Assessing Officer invoked provisions of Section 14A of the Act r.w.r 8D of the Rules and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /-. We also note that the Assessing Officer has made disallowance of ₹ 6,76,188/- towards other administration expenses under Rule 8D(2)(iii) by applying rate of 0.5% on the average investments. In this case, we note that the PMS fee has been paid to three funds as stated above and the investments made has yielded taxable income. The payment of to Motilal Oswal PMS Account was Rs. ₹ 11,125/- and the assessee has earned short term capital gain of ₹ 24,614/- from the securities dealt through this fund. Similarly, assessee has paid PMS fee to Trust Investment Equity of ₹ 2,06,018/- and claimed the same against short term capital gain of ₹ 1,53,995/- which is chargeable to tax. Likewise, assessee paid PMS fee to Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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