TMI Blog2023 (6) TMI 276X X X X Extracts X X X X X X X X Extracts X X X X ..... jurisdiction. DR could not controvert the fact that the case was selected for scrutiny in respect of remuneration paid by the firm and it was not to verify the correctness of the claim related to the expenses. Therefore, without approval by the Competent Authority for making assessment beyond the issue for which the case was selected for scrutiny, is beyond jurisdiction of the learned Assessing Authority. Hence, the addition made by the Assessing Authority is hereby deleted. Decided in favour of assessee. - ITA No. 2741/DEL/2022 - - - Dated:- 31-5-2023 - Shri Kul Bharat, Judicial Member For the Assessee : Dr. Rakesh Gupta, Adv.; Shri Somil Agarwal, Adv., Shri Deepesh Garg Adv., Shrey Jain, Adv. For the Department : Shri O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning income assessable under the head Profits and Gains from business and profession and thus, allowable in full in terms of section 37(1) of the Act. 4. That the Ld. CIT(A) erred in not allowing the said expenditure even though the Appellant had submitted the proofs of all the expenditure claimed along with the detailed justification/ nexus and rationale for claiming such expenses against the remuneration income and failed to appreciate the fact that all such expenses were vouched, genuine and were accepted as such by the Ld. DCIT. 5. That on the facts and the circumstances of the case and in law, the Ld. CIT(A) have failed to appreciate the fact that the Appellant being a zero percent partner in the firm, is not deriving any s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The assessee has also raised additional grounds of appeal which read as under: 1. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in not deleting the impugned disallowance of expenses of Rs. 13,27,995/- as the impugned disallowance made by the Ld. AO is beyond the scope and purview of limited scrutiny. 2. That in any case and in any view of the matter, action of Ld. CIT(A) in not deleting the impugned disallowance of expenses of Rs. 13,27,995/-, is bad in law and against the facts and circumstances of the case and not sustainable on various legal and factual grounds. 3. Facts of the case, in brief, are that for A.Y. 2018-19 the assessee, an individual, filed its r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 2,42,900/-, I hereby invoke sec 44ADA on other professional receipts to allow Rs. 1,21,450/- which is 50% of Rs. 2,42,900/- of other professional receipts as expenses and the remaining expenses are considered as personal expenses not wholly and exclusively incurred for earning the remuneration of Rs. 21,30,000/-. Accordingly, the whole remuneration receipt of Rs. 21,30,000/- is brought to tax without allowing the expenses claimed by the assessee as discussed above. Thus, the total income of the assessee for A.Y. 2018-19 is assessed u/s 143(3) as under: Income returned under the head Business or profession Rs. 9,23,455/- Add: Undisclosed income as discussed above. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the individual business/profession of the partner. All the expenses which are borne for the business of the firm should be duly claimed by the firm only. The expenses borne by the partner is reimbursable from the firm and can be claimed as expenses only by the firm and not by the individual independently. In the instant case, the appellant as claimed the expenses towards earning the remuneration from the firm. The expenses made and claimed by appellant are on account of remuneration from the firm and the earning from his individual professional activity. In the context of earning as remuneration, the same cannot be treated as business activity of the appellant and hence the same does not constitute any activity which comes under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... non-application of mind. The appellant has not pointed out any such circumstances in his grounds of appeal. The AO is accordingly directed to levy the interest applicable as per law after taking into consideration the finding of this appellate order. Accordingly, the ground against the charging of interest u/s. 234B 234C are not sustainable, and hence dismissed. 5. Aggrieved against it the assessee is in appeal before this Tribunal. 6. Apropos to the grounds of appeal and additional ground of appeal, learned counsel for the assessee made elaborate submissions on the issue and vehemently argued that impugned disallowance of expenditure is unjustified and against the facts. In respect of additional ground, the submissions of assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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