2015 (11) TMI 189

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....abh Soparkar, Sr. Adv. with Mr B S Soparkar ORDER ( Per : Honourable Ms. Justice Harsha Devani ) 1. The appellant - revenue has challenged the order dated 29.01.2015 made by the Income Tax Appellate Tribunal, Ahmedabad Bench "A" in ITA No.1324/Ahd/2008 for assessment year 2004-05, by proposing the following two questions : "[1] Whether the Appellate Tribunal has substantially err....

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....,417/-. The return was processed under section 143(1) on 8.12.2003 accepting the income as returned. Thereafter the case was taken up for scrutiny and the Assessing Officer framed assessment under sub-section (3) of section 143 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") and inter alia made disallowance on account of administrative expenses and interest expenses under sectio....

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.... attending to official guests, receiving telephones and such other sundry expenses, the same would fall within the description expended wholly for the purpose of business. However, the amount involved being not very significant, such question is left to be examined in proper appeal proceedings. 4. The assessee had earned dividend income to the tune of Rs. 17,61,380/-, interest on tax free bonds....

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....als) had sustained disallowance of interest and deleted disallowance of administrative expenses. Following the said order, the Commissioner (Appeals) sustained the disallowance of interest expense of Rs. 4,42,276 and deleted the expenditure out of administrative expenses for the reason that the expenditure incurred out of administrative expenses to realize the tax free income was very negligible. ....