9911796707
TMI Blog2012 (10) TMI 1133X X X X Extracts X X X X X X X X Extracts X X X X ..... ER Per Rajendra Singh, A.M. : This appeal by the assessee is directed against the order dated 16.07.2012 of CIT(A)-I, Thane for the A.Y. 1999-2000. The only dispute raised by the assessee in this appeal is regarding disallowance of expenses computing the income from Hawala business. 2. The facts in brief are that the assessee had claimed that he was engaged in the business of purchase and sale of iron and steel. However, it was found that the assessee was only doing Hawala business in iron and steel without any actual delivery of goods. The assessee was thus showing purchase and sale entries on which he was earning commission. There is no dispute raised in this appeal that the assessee was doing the Hawala business. The only d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be entitled to sale promotion, commission and warehouse expenses. The Tribunal however, held that all the other expenses incurred by the assessee for running of the office including the office renovation, conveyance etc. have to be allowed, if, found genuine. The Tribunal accordingly restored the issue to the file of the A.O. for fresh computation of the income. 2.1 In the fresh order dated 22.12.2009 which is the impugned order, the A.O. allowed the administrative expenses at Rs. .3,52,721/- against the claim of Rs. .4,01,682/- after disallowing certain expenses on estimate amounting to Rs. .48,961/-. The A.O. also allowed the depreciation of Rs. .21,604/- and preliminary expenses of Rs. .950/- and computed the total income at Rs. . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the records and considered the matter carefully. The dispute is regarding the allowability of interest expenses of Rs. .1,04,703/- while computing the Hawala income. The gross income from Hawala transactions was computed by the A.O. at the rate of 1% which came to Rs. .4,66,421/-. The assessee had claimed expenses of Rs. .4,01,682/- as administrative expenses, Rs. .1,17,440/- on account of sale promotion, brokerage and warehousing charges and Rs. .1,04,703/- as interest expenses. The Tribunal in the first ground of appeal in the order dated 16.11.2005 in ITA No.4319/M/03 had directed the A.O. to allow the deduction towards statutory payments, expenditure on interest and office expenses from the estimated commission income at the rate of 1%. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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