9911796707
TMI Blog2014 (4) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... enditure on account of freight and delivery, postage, telex & telephone, travelling & conveyance, vehicle expenses, legal & professional charges, sales tax, export promotion expenses and other miscellaneous expenses - Decided against the assessee. Adhoc disallowance – repairs and maintenance expenditure - Held that:-the income shown under the head "income from other sources" is, in fact, rental income though not assessed as such - Assessing Officer has disallowed only 20% of expenditure, which has been confirmed by CIT(A), do not want to interfere with findings of CIT(A) – Decided against Assessee. - ITA No.2022 /Mum/2012 - - - Dated:- 11-10-2013 - Vijay Pal Rao And N K Billaiya, JJ. For the Appellant : Shri Ajay Singh For the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4/-, interest on deposits at Rs.43,812/-, miscellaneous receipts at Rs.48,480/- and dividend at Rs.86/-. Against these receipts, the Assessing Officer observed that the assessee has debited certain expenditure in respect of employee cost, repairs and maintenance, society charges, telephone and telax and travelling and vehicle expenses. Out of the income from services earned from the tenanted premises at Rs.25,72,884/-, the assessee has shown employee cost at Rs.29,22,226/- and other expenses at Rs.30,82,033/-. The Assessing Officer sought explanation from the assessee to justify the huge expenses debited to the profit loss account against the income from services. It was explained that the assessee is providing services to its sister conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uchers and, accordingly, made adhoc disallowance @20% for want of verification and disallowed a sum of Rs.79,095/-. 5. The assessee strongly agitated these two disallowances before the CIT(A). Before the CIT(A), it reiterated its claim of expenditure stating that all the expenditure have been incurred in providing services to its sister concerns. The CIT(A) observed that from the last few years, the assessee was not carrying out any business activity. The assessee has rented out some of its premises to its sister concerns from which it was earning rental income of Rs.40,49,411/-. The CIT(A) further observed that the assessee has also received service charges of Rs.25,72884/- from its sister concerns. After considering the facts and submis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om other sources". It is not understandable how the assessee has shown rent received from sub-letting of properties under the head "income from other sources", when the assessee itself has shown major part of the rent under the head "income from house property". It is an undisputed fact that the assessee is not carrying on any business in trading in steel from the past many years. Therefore, there is no question of allowing any business expenditure. Merely by changing the colour of the rent received from sub-letting of property and showing it as income from other sources, would not entitle the assessee to claim employee cost on account of salaries, wages and bonus at Rs.22,77,398.78/-, contribution to Provident Fund Rs.4,55,491 and staff we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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