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TMI Blog2017 (10) TMI 1666X X X X Extracts X X X X X X X X Extracts X X X X ..... d and that the assessee had failed to establish the genuineness by producing the evidence in the form of bills and vouchers except a few vouchers on vehicle repairs - HELD THAT:- The provisions of Sec 28(v) was reads any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by, a partner of a firm from such firm shall be chargeable to income tax under the head profit and gains business or profession . Once the said income is chargeable to income tax under the head profits and gains business or profession then the assessee is entitled to claim any expenses which he has incurred for the purpose of earning such income. AO has taken a stand that the expenses were not for the purpose of earning income. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 75% of the expenses are directed to be allowed. Appeal filed by the assessee is partly allowed. - Shri Abraham P. George, Accountant Member And Shri George Mathan, Judicial Member For the Appellant : Mr. S. Sridhar, Adv. For the Respondent : Mr. M. Palanichamy, JCIT. ORDER PER GEORGE MATHAN, JUDICIAL MEMBER: ITA No. 1219/Mds/2016 is an appeal filed by the assessee against the Order of the Commissioner of Income Tax (Appeals)-2, Chennai, in ITA No. 56/CIT(A)-2/2013-14 dated 01.03.2016 for the AY 2011-12. 2. Mr. M. Palanichamy, JCIT, represented on behalf of the Revenue and Mr. S. Sridhar, Adv., represented on behalf of the assessee. 3. It was submitted by the Ld.AR that the assessee is a Chartered Accountant who is a Partner in M/s. CNGSN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rds or credit cards. It was a submission that on appeal, the Ld.CIT (A) had confirmed the disallowance made by the AO by holding that there is no commercial expediency and also questioning the genuineness. It was a submission that as the income of the assessee has been assessed by applying the provisions of Sec. 28(v) under the head income from the profits of the business, the assessee was entitled to claim all expenditure in respect of which vouchers and details had already been produced before the AO. It was a submission that the disallowance as made by the AO may be deleted. 4. In reply, the Ld. DR submitted that the provisions of Sec. 28(v) was a deeming provision and the expenses were not for the purpose of earning the income which has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and credit cards. The Ld. DR argued that the provisions of Sec. 28(v) is a deeming provision also does not hold water in so far as the provisions of Sec. 28(v) do not talk of any deeming provision at all. The provisions of Sec .28(v) was reads any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by, a partner of a firm from such firm shall be chargeable to income tax under the head profit and gains business or profession . Once the said income is chargeable to income tax under the head profits and gains business or profession then the assessee is entitled to claim any expenses which he has incurred for the purpose of earning such income. The AO has taken a stand that the expenses were not fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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