9911796707
TMI Blog2014 (5) TMI 349X X X X Extracts X X X X X X X X Extracts X X X X ..... gone out of profit and loss account, the assessee has claimed the expenditure only towards earning of commission income - assessee has earned commission income from only three parties and for purchase and sell of goods - CIT(A) agreed with the findings of AO and confirmed the addition of 75% of expenses claimed by the assessee towards earning by commission – the disallowance is restricted to 50% o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bserved that assessee has earned commission income of Rs. 4,70,305/- and has claimed several expenses in the profit and loss account. The assessee also earned exempt income of Rs. 17,82,586/- in respect of dividend and long term capital gain. The assessee has also shown short term capital gain of Rs. 75,97,228/-. The AO therefore asked the assessee as to why disallowance be not made in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ains as mentioned above. Since the exempt income and short term capital gain have gone out of profit and loss account, the assessee has claimed the expenditure of Rs. 6,74,539/- only towards earning of commission income. It was further observed by AO that assessee has earned commission income from only three parties and for purchase and sell of goods. AO therefore asked the assessee as to why disa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but the assessee had to maintain the entire infrastructure and therefore the expenditure was more. The asssessee had to incur expenditure on salary, telepbone bills, electricity bills even thought there was no fresh commission income during the year. However assessee carried investment activities and had earned income in the form of dividend income, long term capital gains and short term capital ..... X X X X Extracts X X X X X X X X Extracts X X X X
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