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TMI Blog2019 (7) TMI 1545X X X X Extracts X X X X X X X X Extracts X X X X ..... tisfied himself about incurring of any administrative expenses. The partnership firm is an independent entity and requires to run its affairs separately. The partners are holding the mutual agency in the partnership firm and unless the partners are shown to be drawing remuneration from the assessee concern and at the same time investing its attention in the partnership firm, there is no perceptibl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er s. 143(3) of the Income Tax Act , 1961 (the Act) concerning A.Y. 2013-14. 2. The captioned appeal has filed by the assessee seeking to impugn the disallowance sustained by the CIT(A) amounting to 1,83,184/- under s. 14A r.w.r. 8D (2)(iii) of the I. T. Rules. The assessee is a partner in M/s. Kamlesh Gandhi Infrastructure. His share of holding is of 40% during the year under consideration. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee has earned dividend income of ₹ 32,155/- on investment in mutual funds. The assessee has also claimed exempt income of ₹ 38,66,171/- from the partnership firm in which the assessee is a partner. The investment in mutual fund does not per se call for any separate administrative expenditure having regard to the fact that the mutual funds are run by professional who sep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own to be drawing remuneration from the assessee concern and at the same time investing its attention in the partnership firm, there is no perceptible reason to disbelieve the assessee for not incurring in expenditure. We, thus, find no reason to thrust mechanical application of Rule 8D(2)(iii) of the Act in the given facts. The order of the CIT(A) is consequently set aside and the AO is directed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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