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TMI Blog2021 (4) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 25.09.2017. 2. Issue in assessment year 2013-14 is with respect to the confirmation of disallowance of expenditure amounting to Rs. 11,51,875/- and Rs. 9,98,401/- for assessment year 2014-15. 3. Facts in both the years are similar and, therefore, we first take the facts for assessment year 2013-14. The assessee is an Individual deriving income from profession and is a partner in a law firm. The assessee filed his return of income on 30th September, 2013 declaring income of Rs. 2,85,00,130/-. The case of the assessee was selected for scrutiny. The assessee has debited expenses of Rs. 13,88,556/- and out of which assessee has disallowed expenditure of Rs. 2,36,681/-. In nutshell, assessee has claimed salary expenditure, communication e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. The Ld. DR relied upon the order of the lower authorities. 8. We have carefully considered the rival contentions and perused the orders of the lower authorities. The assessee is a partner in a law firm and is deriving remuneration which is taxable under Section 28(v) of the Income Tax Act under the head business and profession. Thus, this income is chargeable under the head income from business and profession. According to section 29, income referred to in section 28 shall be computed in accordance with section 30 to 43D of the act. Therefore from this income assessee is entitled to deduction of expenditure u/s. 30 to 37(1) subject to other sections. Thus, this income is not akin to salary income. There is no employer employee relations ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,453/-. Out of above expenditure assessee identified Rs. 13,86,137/- on account of personal use and disallowances u/s. 14A of the Act. Thus, only Rs. 871316/- were claimed as allowable expenditure. On careful examination of the facts and details of the expenditure, we find that there is no reason that the expenditure cannot be allowed to a partner whose income is taxed on account of remuneration and interest received from the firm u/s. 28(v) of the Act as business income. The only criteria for allowance of the expenditure are that expenditure should have been incurred by the assessee wholly and exclusively for the purpose of the business. In the present case the assessee has given details of expenditure such as salary expenditure of driver, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Ld. DR could not controvert the above finding in that decision as to why it does not apply. It is not case of revenue that assessee has not incurred those expenditure or those are not incurred in the business of the assessee. In view of this respectfully following the decision of the co-ordinate bench, we allow the appeal of the assessee in I.T. Appeal No. 3830 (Del) of 2017 for assessment year 2013-14. 10. The facts in the case of I.T. Appeal No. 7052 (Del) of 2017 for assessment year 2014-15 in the case of the assessee are also identical except the amount of disallowance. For the present year the assessee has debited total expenditure of Rs. 14,11,546/-, disallowed its own sum of Rs. 4,13,145/-. The Ld. Assessing Officer disallowed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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