TMI Blog2019 (7) TMI 1860X X X X Extracts X X X X X X X X Extracts X X X X ..... account, the name of the employees is given and, there is no such detail as to what work is entrusted to these employees and whether the work entrusted to these employees is regarding earning of income taxable under the head Income from other sources . Hence, this expenditure on Salaries and bonus is not correlated by assessee with earning of income taxable under the head Income from other sources and therefore, this expenditure of Salaries and bonus is also not allowable u/s. 57(iii) of the IT Act. Professional charges - only detail available is this as to whom it was paid and for which period. There is no such detail available as to whether such professional charges is in respect of earning of income taxable under the head Income from other sources and therefore, even after considering the additional evidence, these expenses of Professional charges also cannot be held to be allowable u/s. 57(iii). Hence, it is held that these three expenses i.e. PMS charges, Salaries and bonus and Professional charges are not allowable u/s. 57(iii) of the IT Act and the remaining expenses is very small and less than the amount of expenses already allowed by the AO.- Decided against ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : 0.5% of average investment 23,41,242 Expense claimed under section 57 27,31,232 Amount restricted to the income under the head Income From Other Sources 18,60,702 1.3 The amount of ₹ 18,60,702/- has been claimed as deduction to the extent of Income shown under the head Income from Other Sources. In view of above grounds, the assessee believes that the expenses, claimed under Section 57 as a deduction from the total income is fully justifiable and learned Commissioner of Income Tax (Appeals) has erred in disallowing the said claim under Section 57 2. Without prejudice to the foregoing contentions even assuming but without admitting that the action of the learned Commissioner of Income Tax (Appeals) upholding the disallowance to be in order, The learned commissioner ought to have either considered an appropriate sum as cost of acquisition of securities for the purposes of computation of capital gains in the event of sale or as expenditure incurred wholly and exclusively in connection with the transfer of securities during the year thereby entitling the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... foreign equity is yielding taxable income and therefore, deduction should be allowed u/s. 57(3) against this taxable income under the head income from other sources. The ld. DR of revenue supported the orders of authorities below. He also submitted that the issue in the present case is squarely covered against the assessee by the Tribunal order in assessee s own case for Assessment Year 2012-13 and therefore, respectfully following the same, the issue in the present year should also be decided against the assessee on same line. 4. We have considered the rival submissions. We find that as per the assessment order, it is noted by the AO that the assessee is having investment of ₹ 40,73,02,270/- as on 01.04.2013 and ₹ 52,91,94,474/- as on 31.03.2014 and he worked out the average investment of ₹ 46,82,48,372/- and held that 0.5% of such average investment is to be disallowed u/s. 14A. We also find that the balance sheet of the assessee as on 31.03.2014 is available on page no. 20 of the paper book and as per the same, there is investment in Indian Securities of ₹ 54,16,19,374/- and investment in Foreign Securities of ₹ 13,19,01,518/- and as per the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e year under consideration, the appellant incurred an expenditure of ₹ 50,72,474/- out of which a sum of ₹ 23,41,242/- was excluded in terms of section 14A. The balance amount claimable works out to ₹ 27,31,232/. The claim for deduction under section 57 was however restricted to ₹ 18,60,702/ representing the total income from other sources. The details of expenses incurred during the year ended March 31, 2014 is as under: Nature of Expenses Amount PMS charges 1,326,690 Salaries bonus 1,708,280 Professional Charges 1,328,748 Vehicle Maintenance 276,186 Travel expenses 11,064 Computer Maintenance 51,778 Printing Stationary 4,060 Telephone Charges 164,911 Bank Charges 200,757 Total 50,72,474 Less: Disallowance under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the above and in the interest of justice and fairness, we request your honors to kindly consider the above, admit the additional evidence and dispose of the appeal on merits. 7. As per the above request of the assessee for admission of additional evidence, it is seen that this is made by the assessee in view of the Tribunal order in own case for Assessment Year 2012-13 and hence, we admit the additional evidence. Having been admitted the additional evidence, we now examine as to whether such additional evidence filed by the assessee is rendering any help to assessee in the present case. As per the additional evidence filed, we find that as per page no. 125 of the paper book is the details of expenses claimed to be allowable u/s. 57 of ₹ 50,72,474/- and this detail is already reproduced by us above from the assessment order and therefore, this not a new evidence and not relevant for the present discussion. On page nos. 126 to 128 of the paper book is the ledger account copy of Brokerage, PMS Other Charges in which an amount of ₹ 13,26,690/- is debited during the present year. As per the narration available in this ledger account, it is seen that it is debited o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and ledger copy of this account is available on page 132 of the paper book and in the same, only detail available is this as to whom it was paid and for which period. There is no such detail available as to whether such professional charges is in respect of earning of income taxable under the head Income from other sources and therefore, even after considering the additional evidence, these expenses of Professional charges also cannot be held to be allowable u/s. 57(iii) of the IT Act. Hence, it is held that these three expenses i.e. PMS charges, Salaries and bonus and Professional charges are not allowable u/s. 57(iii) of the IT Act and the remaining expenses is very small and less than the amount of expenses already allowed by the AO of ₹ 18,60,702/- because out of ₹ 27,31,232/-, the AO has allowed deduction of ₹ 18,60,702/- being the amount equal to the total income declared by the assessee under the head Income from other sources . Hence, even after considering the additional evidence filed by the assessee, we find that assessee does not get any help from the said additional evidence. 9. Now we reproduce the relevant para nos. 8, 9 and 12 from the earli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earning such income taxable under the head income from other sources and a categorical finding has been given by CIT (A) in para no. 6.2 of his order as reproduced above that no such detail was furnished by the assessee. Before us also, the assessee has made general arguments and has submitted general details but no specific details were furnished before us also. Hence, we hold that no deduction is allowable u/s 57 (iii). 12. Now we deal with and decide the alternative argument of ld. AR of assessee that even if expenses are held as not allowable against income from other sources, the same should be allowed against income from capital gain in the present year or future years. Regarding this argument, we would like to observe that for computing income from capital gains, deduction is allowable u/s. 48 and expenses which can be allowed as per this section are expenses incurred wholly and exclusively in connection with transfer of asset or cost of acquisition of asset or cost of any improvement of the concerned capital asset only. The claim of expenses in the present case is not for those expenses which are incurred on account of cost of transfer of asset or cost of acquisitio ..... 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