9911796707
TMI Blog2021 (9) TMI 637X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst the assessee X X X X Extracts X X X X X X X X Extracts X X X X ..... duction to the extent of income shown under the head Income from Other Sources. In view of above grounds, the assessee believes that the expenses claimed under Section 57 as a deduction from the total income is fully justifiable and learned Commissioner of Income Tax (Appeals) has erred in disallowing the said claim under Section 57. 2. Without prejudice to the foregoing contentions even assuming but without admitting that the action of the learned Commissioner of Income Tax (Appeals) upholding the disallowance to be in order, The learned commissioner ought to have restricted the disallowance to the amount actually claimed of ₹ 18,89,670/- and not ₹ 39,34,034/-. The amount of ₹ 39,34,034/- includes an amount of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome was filed on 29.07.2014 declaring a total income of ₹ 8,12,640/- and the second revised return of income was filed on 25.02.2015 declaring a total income of ₹ 80,64,780/-. The Assessing Officer completed the assessment on 25.03.2016 determining the total income at ₹ 1,25,14,780/- and consequently raised a demand of ₹ 19,04,944/-. While completing the assessment, the AO made the following disallowances: a) Disallowance under section 14A ₹ 20,44,364/- b) Disallowance of expenses under other sources ₹ 24,05,536/- Total ₹ 44,50,000/- 3. On appeal, the CIT(Appeals) restricted the disallowance to ₹ 39,34,034. Against this, the assessee is in appeal before us. 4. After hearing both the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed by the assessee is allowable under any provisions of the law. For that, the assessee has to show that the claim of the assessee is allowable u/s. 57 of IT Act because the expenses are incurred in earning of income from other sources. As per the details of the expenses claimed by the assessee, it is available on table 2 of written submissions filed by the assessee before the CIT(A) as reproduced above, it is seen that there is no claim regarding any expenses specified in clause (i) of section 57 i.e. commission or remuneration to banker or any other person for the purpose of realising dividend or interest income because the assessee has claimed deduction on account of PMS charges, Salaries, Professional charges, vehicle maintenance, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sources" but income could not be earned in the present year. The reason for disallowance made by the AO and confirmed by CIT(A) is this that the assessee has not furnished necessary details and hence, this judgment renders no help to the assessee in the present case. 11. Reliance has been placed by ld. AR of assessee on the Tribunal order rendered in the case of East West Hotels Ltd. vs. ACIT (supra). In that case, lease rent income was to be assessed as income from other sources and the assessing officer held that expenditure allowable is restricted to only such payment, which is separately binding on the employer and legal entity, i.e., company, such as salaries, PF, ESI and other inevitable expenses. In that case, the assessee was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any, these judgments of Hon'ble Calcutta High Court in the case of CIT Vs. Ganga Properties Ltd. (supra), Hon'ble Bombay High Court in the case of Chinai & Co. (P.) Ltd. Vs. CIT (supra) and of Hon'ble Allahabad High Court in the case of Rampur Timbur & Turnery Co. Ltd. (supra) have no relevance and since, the Tribunal has followed these judgments and decided the issue in case of that assessee being a company, this Tribunal order is also not applicable in the present case. The nature of expenses in dispute in that case are noted by the Tribunal in the form of a table and from the same, it is seen that the expenses claimed in that case were regarding the personal expenses of Directors, travelling expenses of others, Motor car expe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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