2011 (12) TMI 561 - AT - Income Tax

Summary

Issues involved: Appeal against CIT(A) order for Assessment Year 2005-06.

Ground no. 2 - Municipal Taxes:
The assessee claimed deduction for municipal taxes paid on adjoining premises used for business. Lack of evidence of actual business use led to disallowance of the claim. Appeal dismissed.

Ground no. 3 - Repairing Charges:
Discrepancy in TDS amount on repairing charges received from an associate concern. Entries in ledger accounts clarified the correct amounts. AO's addition based on TDS discrepancy deemed unjustified. Issue decided in favor of the assessee.

Ground no. 4 - u/s 14A Disallowance:
Dispute over disallowance u/s 14A of the IT Act on dividend income. Citing legal precedents, the matter was remanded to the AO for a fresh decision with proper consideration of expenses related to dividend income.

Conclusion:
The appeal was partly allowed, with the decision pronounced on 02-12-2011.