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TMI Blog2016 (8) TMI 993X X X X Extracts X X X X X X X X Extracts X X X X ..... that these expenditures are purely for the purpose of earning of business incomes shown, like in the nature of audit fees, bank charges, interest on loan, insurances, payments made for professional fees, telephone expenses, car repairs etc. All these expenses have been incurred by way of account payee cheques barring one minor item of ₹ 11,712/-, which is in cash. Thus, neither the genuineness of the expenditure is doubted nor it is the case of the revenue that these are unverifiable. Thus, we do not find any reason to hold that these expenditures are to be disallowed. Accordingly, we allow the expenditure claimed by the assessee which has been debited in the profit and loss account against the business income. Thus, grounds raised by the assessee are treated allowed. Nature of income - Business income from real estate transaction/ commission - Held that:- We find that assessee had filed all the details of income earned and expenditure incurred. Looking to the nature of expenditure and also the fact that the same has been incurred mostly through account payee cheques, it cannot be held that either the expenses are unverifiable or they had not been incurred for the purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction business and United Marine Pharmacy. During the year, the assessee derived income from share of profit and remuneration income from the firm, M/s Gokul Constructions and income from business. The AO noted that, assessee has claimed various expenses debited in the profit and loss accounts, the details of which are as under:- Sr. No. Expenses under separate heads Expenses claimed Rs. 1 Audit Fee 11,030 2 Bank charges 16,665 3 Conveyance 1,16,838 4 Depreciation 3,03,839 5 Car Insurance charges 22,973 6 Interest on loan 8,25,985 7 Int. on capital (UMP) 3,77,550 8 Loan expenses 32,243 9 Membership Subscription ch. 7,000 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e year under consideration. In view of this, I find no reason in interfering with the action of the AO in this regard. This ground of appeal is therefore decided against the appellant. As regards Ground no.2 taken by the appellant, I have carefully considered the assessment order and the submissions made for the appellant. In so far as the allowance of expenditure is concerned the AO has already allowed the interest expenditure as a nexus in earning that income. Therefore, in so far as the assessee was able to prove his claim, the Assessing Officer has allowed the deduction. However, as regards all other expenses claimed by the appellant, in the absence of any material produced either before the AO or before me, I do not find any reason to vitiate the order of the AO. Secondly, appellant was shown income of meager amount of ₹ 5,00,000/- against which he has claimed huge expenses like conveyance, depreciation etc. which has in turn an effect to reduce the taxable remuneration chargeable to tax. Thus, what is shown as income from profession is nothing but an alibi taken to reduce the burden of tax. Therefore, in the absence of any material produced to justify to prove any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A). 8. We have heard the rival submissions and also perused the relevant finding given in the impugned orders as well as materials placed before us. The main dispute relates to disallowance of expenditure as claimed by the assessee in the profit and loss account and also treatment of the business income as income from other sources . The main allegation of the Ld. CIT(A) for disproving the medical income as business income is that, the assessee could not furnish any details or evidences before him. Such a finding of the Ld. CIT(A) has been disapproved/ rebutted by the Ld. Counsel by producing the certified copy of order sheet entries of the first appellate proceedings, wherein, the Ld. CIT(A) himself had asked for the details of business income and expenditure. In response to the said order sheet entry dated 03.07.2013, the assessee had filed these details on 20th August, 2013. Further, from the perusal of the paper book submitted before us, it is seen that assessee had furnished copy of Ledger account of medical income giving date wise details and income earned along with the copy of certificate of Life Membership of IMA and Registration Certificate allotted by MCI. Thus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Counsel had filed the copy of order sheet-entry of the First Appellate Authority to controvert the finding of the ld. CIT(A). In this case also all the details of earning of business income as well as details and nature of expense incurred were filed along with the Ledger account before the ld.CIT(A). The break-up of expenditure as given before us are as under:- S. No. Details of Expenses Bank Cash Journal Entries Total 1 Audit Fees 11,030 - - 11,030 2 Bank Charges 14,525 - - 14,525 3 Bank interest 12,59,405 - - 12,59,405 4 Conveyance 2,44,427 - - 2,44,427 5 Depreciat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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