9911796707
TMI Blog2012 (7) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... l fees, capital gains, interest, dividend and director fees. The return of income was filed by the assessee on 16-9-2008 declaring income of Rs.42,34,640/-. Thereafter the case was selected for scrutiny and the assessment was completed u/s.143(3) of the Act vide order dated 22-10-2010 determining the total income at Rs.45,45,830/- after making various additions/disallowances. Aggrieved by the order of the A.O. the assessee preferred appeal before CIT (A). CIT (A) granted partial relief to assessee and therefore, now the assessee is in appeal before us. 3. The first ground is not pressed and hence not adjudicated. 4. The second ground of appeal relates to disallowance of Rs.51,272/- made u/s 14A/Rule 8D of the I.T. Act,1961. 5. During the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against the same. He placed on page-10 of the paper book his personal profit and loss account and on page No.5 to 7 of paper book the profit and loss account of his business. He further submitted that there is no finding of AO about incurring of expenses related to exempt income and when no such expenditure has been incurred there cannot be disallowance u/s 14A. For this proposition he relied on the following decisions: (1) CIT vs Reliance Industries Ltd 339 ITR 632 (Bom). (2) Dishman Pharmaceuticals & chemicals Ltd v/s DCIT 45 SOT 37 (Ahd) (URO) and (3) Balarampur Chini Mills Ltd vs DCIT 140 TTJ (Kol) (UO) 9. He thus urged that the disallowance be deleted. 10. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of various expenses holding the same to be of personal nature. 13. During the course of assessment proceedings, the A.O. found that the assessee's business premises and residence is situated at the same location. The assessee was therefore, required to show cause as to why certain expenses like those on books/periodicals, repairs, security, computer, depreciation on car, traveling etc., should not be proportionately treated as personal in nature since the residence and office are the same. The assessee vide submissions dated 20-10-2010 has stated that books and periodicals are mainly connected to profession and that other magazines are purchased from household expenses. For repairs it is stated that separate repairs have been incurred for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs/Maintenance : Rs. 75,650/- : Rs.9,31,433/- 14. The A.O. therefore disallowed one fourth of Rs.9,31,433 = Rs.2,32,858/- less Rs.32,112/- (suo moto disallowed) = Rs.2,00,746/- is being personal in nature in terms of section 37(1) and not pertaining to earning of any business income. 15. The assessee carried the matter before CIT (A). CIT (A) granted partial relief to assessee by holding as under:- " I have considered the facts of the case, assessment order and appellant's submission. A.O. disallowed1/4th out of various expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of depreciation on other business assets except motor car and furniture. The disallowance of depreciation for personal use is therefore restricted to only motor car and furniture. The balance disallowance out of depreciation is deleted. Subject to above relief, I hold that there would be personal element involved in other expenses and therefore the disallowance at the rate of one fourth made by the A.O. is justified. Thebalance disallowance is accordingly confirmed." 16. Aggrieved by the action of CIT (A), the assessee is now in appeal before us. The Ld. A.R. submitted that the Assessee has sou moto disallowed expenses of Rs 32,112 being of personal in nature. (page 15 of paper book). With reference to sullage expenses the Ld. A.R. submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or gardening etc. The expenses that have been incurred were by cheque and the copy of ledger was placed at page 19 of paper book. The Ld. A.R. thus urged that no additional disallowance other than those already disallowed suo-moto is called for. 17. The Ld. D,.R. on the other hand relied on the order of A.O. 18. We have heard rival contentions and perused the material on record. The undisputed facts are that the assessee has incurred various expenses as listed on page 15 of paper book and suo-moto disallowed expenses from them. The A.O. has in addition to the disallowance made by assessee further disallowed the expenses. The disallowance of expenses by A.O. was adhoc in nature. He has not pointed out the expenses which are of non business ..... X X X X Extracts X X X X X X X X Extracts X X X X
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