TMI Blog2020 (10) TMI 1237X X X X Extracts X X X X X X X X Extracts X X X X ..... ation on the vehicle. Out of the above expenditure the assessee himself has disallowed part of personal expenditure and disallowance u/s 14A of the Act. The lower authorities could not say that in all these expenditure has not been incurred by the assessee wholly and exclusively for the purpose of his business. The allegation of the ld AO was that the expenses incurred by the assessee does not have any nexus with remuneration earned does not have any legal backing. He does not say that these expenditure are not incurred by the assessee for the purpose of the business. Naturally when the income is taxed as remuneration from firm as business income, any expenditure incurred to earn that income is an allowable business expenditure, if it sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom Partnership firm. 2. That the ld CIT(A) has erred in law in holding that the Partner s remuneration cannot be considered as business income. 3. Brief facts of the case shows that the assessee is an individual and advocate by profession. He received income from house property, business and profession, capital gain and income from other sources. He filed his return of income for AY 2014-15 on 29.11.2014 declaring income of ₹ 3,67,82,630/-. The case of the assessee was selected for scrutiny firstly as limited scrutiny and subsequently converted to complete scrutiny. The assessee has claimed the expenditure of ₹ 2257453/- against remuneration received from a law firm as a partner. The ld AO disallowed this expenses. The m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the lower authorities. The fact shows that the assessee is an individual who is a partner in a law firm namely Trilegal and received a remuneration of ₹ 3,22,60,925/- which is offered for taxation u/s 28(v) of the Act. The assessee also received share of profit from the above firm of ₹ 31624561/- which is claimed as exempt u/s 10(2A) of the Act. The assessee incurred certain expenditure of running and maintenance of car with driver, communication expenditure, certain professional fees, depreciation on car and other miscellaneous expenditure amounting to ₹ 22,57,453/-. Out of above expenditure assessee identified ₹ 13,86,137/- on account of personal use and disallowances u/s 14A of the Act. Thus, only ₹ 871316/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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