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TMI Blog2012 (6) TMI 809X X X X Extracts X X X X X X X X Extracts X X X X ..... J.M.: The appeal is filed by the department and CO is filed by the assessee, against the order of the CIT(A)-9, Mumbai dated 07.01.2011. 2. The issue in dispute is disallowance and applicability of section 14A of the I.T. Act. 3. The facts are that the assessee is in the business of shipping activity and is assessable on presumptive basis under Chapter XII-G of the Income Tax Act, 1961 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,90,396. 6. The department has filed the appeal against this order of the CIT(A) whereas, the assessee has come in cross objections, pleading that provision of section 14A are not applicable on presumptive tax regime of section 115VG, where the profit and loss account has to be ignored. 7. At the time of hearing, the AR pointed out that the similar issue arose in the assessment year 2008-09, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such business chargeable to tax under the head Profits and Gains of business or profession notwithstanding any thing to the contrary contained in section 28 to 43C. It, therefore, follows that when the income of the assessee from the business of operating ships is computed as per the special provisions contained in Chapter XIIG, only the expenses incurred by the assessee for earning income of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isallowance u/s 14A on account of any expenditure incurred in relation to earning of exempt dividend income. In our opinion, if at all the assessee has claimed any such expenditure in computation of profit of business of shipping, the same are to be taken as disallowed when the income of the said business is finally computed in accordance with the provisions of Chapter XIIG and no separate disallo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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