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TMI Blog2014 (5) TMI 349X X X X Extracts X X X X X X X X Extracts X X X X ..... a, Sr. D. R. ORDER Per : D. K. Tyagi, Judicial Member:- This is the assessee's appeal against the order of Ld. CIT(A)-XVI, Ahmedabad dated 20-12-2010. 2. The assessee has taken following effective ground:- "1. The Ld. CIT(A) erred in confirming the disallowance of Rs. 5,05,904/- because the expenditure is disallowable u/s. 14A, with respect to the exempt income or U/s. 37 as not for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 32,882/-, leave encashment expenses of Rs. 22,321/-, ex-gratia salary of Rs. 28,545/- and several other expenses. The AO further observed that assessee himself disallowed provision for taxation and some other expenses amounting to Rs. 10,79,726/-. The asssessee has therefore claimed an expenditure of Rs. 6,74,539/- towards earning of commission income of Rs. 4,70,305/- and short term capita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of earning commission income or u/s. 14A towards earning of exempt income. Thus, a disallowance of Rs. 5,05,904/- was made by AO. 4. Before Ld. CIT(A) assessee's submission was that it has maintained books and accounts in respect of agency business and entire expenditure was for the purpose of business. Assessee stated that the it could not sell the agency goods during the year and there was n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 5,05,904/- being 75% of expenses claimed by the assessee towards earning by commission. We are however after taking totality of the circumstances in view feel that ends of justice will be met, if this disallowance is restricted to 50% of the expenses claimed by the assessee. We hold accordingly. 6. In the result, assessee's appeal is partly allowed. Order pronounced in open court on the date ..... X X X X Extracts X X X X X X X X Extracts X X X X
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