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2005 (1) TMI 587 - ITAT MUMBAIExpenditure incurred in relation to income not includible in total income - disallowance of administrative expenditure u/s 14A - HELD THAT:- In the assessment order, Assessing Officer disallowed administrative expenses and depreciation expenses on proportionate basis. It is the duty of the assessee to allocate the expenditure but in case the assessee fails to allocate the same, the Assessing Officer has no option but to disallow the same on proportionate basis. From the perusal of administrative and other expenses I find that assessee has incurred expenses on Demat for Rs. 63,324, Share Stamp charges of Rs. 18,936, the total of these two expenses works out to Rs. 82,260. In the assessment order the Assessing Officer has disallowed Rs. 73,608 only as expenses attributable to earning of dividend which is claimed exempt u/s 10(33) of the Income-tax Act, 1961. From the perusal of administrative and other expenses it can be seen that assessee has claimed computer expenses of Rs. 49,500, conveyance expenses of Rs. 28,577.50 and salary expense of Rs. 2,60,933. In the income side total income shown is Rs. 4,42,577.75 which comprises of Rs. 3,40,170.75, being dividend exempt u/s 10(33), Commission received Rs. 15,000 and Warehousing Charges of Rs. 87,407.00. Thus, disallowance made by Assessing Officer u/s 14A is neither excessive not unreasonable. I, therefore, incline to uphold the order of the ld. CIT(A) on this issue. In the result, the appeal of the assessee is dismissed.
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