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TMI Blog2021 (9) TMI 1078X X X X Extracts X X X X X X X X Extracts X X X X ..... routine expenses required to be incurred by any corporate entity for maintaining corporate status of the assessee - these expenses cannot be disallowed merely for the reason that there is no revenue from operations - we direct the AO to delete additions made towards filing fees for ROC, office electricity, postage expenses, printing stationery and secretarial/other expenses. Processing charges - finding of the ld. CIT(A) that 2/3rd of processing charges relates to loans/advances of lending activity of the assessee and hence, apportioned said expenses between business activity of the assessee and non-business activity and thus, allowed relief of ₹ 75,327/-. Facts remain unchanged. The assessee has failed to bring on record any e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. 4. The CIT (Appeals) failed to appreciate that the apportionment of expenses in para 6 of the impugned order had no sanctity and ought to have appreciated that the expenses were incurred for maintaining the income earning apparatus while such expenses were allowable in terms of section 37(1) of the Act, thereby vitiating the related findings in para 6 of the impugned order. 5. The CIT (Appeals) failed to appreciate that the reference to the provisions of section 14A of the Act was wholly unjustified and ought to have appreciated that the provisions of section 14A of the Act had no application to the facts of the case. 6. The CIT (Appeals) failed to appreciate that there was no proper opportunity given before passing of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nature of routine expenses to be incurred for maintaining corporate status of the assessee and thus, merely for the reason for no revenue from operations, relevant expenditure cannot be disallowed. 4. The ld. DR on the other hand supporting order of the ld. CIT(A) submitted that the assessee has failed to justify expenditure debited into profit loss account with business activity and thus, there is no error in the order of ld. CIT(A) in sustaining various expenses debited into profit loss account. 5. We have heard both the parties, perused materials available on record and gone through orders of the authorities below. Admittedly, if you go through the nature of expenses like filing fees for ROC, office electricity, postage expens ..... X X X X Extracts X X X X X X X X Extracts X X X X
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