9911796707
TMI Blog2012 (9) TMI 1191X X X X Extracts X X X X X X X X Extracts X X X X ..... loss determined in return filed u/s.139(A) of the Act of ₹ 48,599/. The addition of ₹ 97,82,691/- comprised of disallowance made out of interest amounting to ₹ 93,60,788/- and from other administrative expenses amounting to ₹ 4,21,903/-. 1.02 The Learned CIT(A) did not appreciate that no disallowance was warranted u/s. 14A of the Act as the appellant has also received taxable interest income of ₹ 95,43,091/-, which was already offered to tax. Direct nexus between taxable interest income and expenses having been proved, appellant prays that no disallowance u/s. 14A was warranted as the provision of he said Section 14A are triggered only if the appellant has earned tax free income against any expenses incurred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest under head 'income from other source', the ground is allowed to be withdrawn. Only ground no. 1 survives for consideration. 2. We have heard Ld. Counsel and Ld. DR and perused the paper book filed. 3. Briefly stated assessee is a member of Joint Venture - M/s. Ackruti SMC. It has invested in capital of Joint Venture. The break up of investment as on 31.03.2007 and 31.03.2008 is as under. Sr.No. Investments 31.03.2007 31.03.2008 1 Capital / current Account of Partnership Firm 82,654,353 86,106,854 To make investment in the JV, assessee has taken loans and is paying interest on the same. The interest income of ₹ 95,43,091 has been offered to tax by the assessee under the head 'income from other sources'. The intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nance charges 99,77,398 Total 1,00,28,445 Profit & Loss Before Tax (4,13,648) 6. The computation of income filed by assessee is as under : STATEMENT OF INCOME INCOME FORM BUSINESS: Net Loss as Per Profit & Loss Account (413,479) Add : Disallowable expenses Filing Fees (Sub division share) 2448 Interest paid 9977398 9979846 9,566,367 Less:Disallowable Income Share of profit from JV(FY:2006-07) 169 Share of profit from JV(FY:2007-08) 71706 Interest Received. 9543091 9,614,966 Share of profit from JV: Share of profit from JV(FY:2006-07) 169 Share of profit from JV(FY:2007-08) 71,706 71875 Less:Share of profit exempted u/s. 10(2a) 71875 Nil INCOME FROMOTHER SOURCE: Interest Received 9,543 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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