TaxTMI 
TaxTMI 
2011 (3) TMI 89
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....he assessee, an advocate and solicitor by profession, is a partner in a law firm by the name of Mulla & Mulla Craigie Blunt and Caroe. During the relevant previous year, the assessee received Rs 14,43,000, towards remuneration as a working partner, and Rs 46,17,600, towards share of profit in the partnership, from the said law firm. There is no dispute that the remuneration so received from partnership firm is taxable as 'profits and gains from business and profession', the assessee is, therefore, entitled to normal admissible deduction from the said income. However, when assessee claimed deductions aggregating to Rs 1,32,911, from remuneration so received from the law firm, the Assessing Officer did not allow the same in entirety. He invok....
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....s of the assessee, as it would amount to double taxation of an income. Learned counsel, however, submits that since there is a cleavage of opinion by coordinate benches on this issue, and looking to the smallness of amount, he does not wish to carry this matter to a Special Bench which will be inevitable in view of the conflicting views expressed by the coordinate benches. It is for this reason, according to learned counsel, that he does not press this grievance before us, even though he firmly believes that the assessee deserves to succeed on this preliminary issue itself. He, however, hastens to add that even as he does not press this grievance, it should not be construed as his having conceding the appeal on this issue. 4. Lear....
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....e club which is primarily a contribution for expenditure on the public good and the expenditure for so incurred cannot be, according to learned counsel, said to be for the purpose of earning any income. It is thus urged that this expenditure should also be kept out of expenditure which can be considered for disallowance under section 14A. As regards the remaining expenses i.e. Rs 9,594 in respect of books and reading material, Rs 16,168 in respect of insurance to car, Rs 14,766 in respect of repairs to car and Rs 4,800 in respect of computer expenses, learned counsel invites our attention to Section 16(1), as it is stood at the relevant point of time, which permitted a standard deduction of Rs 20,000 in respect of salary earning for more th....
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....ficer as is evident from the observations made by the Assessing Officer in paragraph 4.3 of the assessment order. Learned Departmental Representative takes us through the orders of the authorities below to justify and support the same. It is his contention that only practical method of apportioning of common expenses, between expenses incurred to earn profit share form the firm and the remuneration from the firm, is to apportion the expenses incurred by the assessee is in the ratio of earning of the assessee from these distinct source and once the exercise is carried out, it would not be appropriate to exclude some items of expenditure. Learned Departmental Representative submits that there is no dispute that car is used for the purpose of ....
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....propriate disclosure in the income tax return itself - by way of note attached to the return. Our attention is invited to note to the return of income, dated 20.10.2003, a copy of which was filed before us and in which all the relevant details were set out. Learned counsel once again reiterated his submissions and urges us to delete the impugned disallowance, or modify the same. 5. Having considered the rival contentions and having perused the material on record, we are of the considered view that the disallowance under section 14A cannot indeed cover depreciation inasmuch as what can be disallowed under section 14A is only expenditure incurred by the assessee and not allowance admissible to him. Hon'ble Supreme Court in the case ....
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.... expenditure. The plea that expenses are in the nature of cost incurred on social cause is not supported by any material on record, and we are, therefore, unable to accept the contention of the assessee so far as inclusion of Rotary Club membership from disallowance under section 14A is concerned. Coming to the question as to the basis on which remaining expenses are to be apportioned between the expenditure incurred for the purpose of profit share and expenditure incurred for the purpose of earning remuneration from partnership firm, we are unable to see much guidance from section 16(1) as it is stood at the relevant point of time. In our considered view the purpose of standard deduction under section 16(1) was to grant deduction in respec....