2014 (11) TMI 999

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.... (b) Disallowance out of Motor Car expenses - Rs. 77,869/- (c) Disallowance out of Travelling & Conveyance exp. - Rs. 1,20,630/-. (d) Disallowance made out of telephone expenses. 3. We heard the rival contentions and perused the record. The first issue relates to the disallowance made u/s 14A of the Act. The Ld A.R submitted that the assessee is the proprietor of two different concerns viz., M/s G.Amphray Laboratories, M/s 4R Millenium Securities and carries on share trading/investment activities in his personal name also. The first concern is engaged in chemical business. The second concern is engaged in share trading activities. The Ld A.R submitted that the assessee did not carry on any trading activity in the concer....

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....ion of Mumbai Tribunal in the case of J.K. Investors (Bombay) Ltd (ITA No.7858 & 7851/Mum/2011 dated 13.03.2013). On the contrary, the Ld D.R placed reliance on the order of Ld CIT(A). 4. Admittedly, the assessee did not claim any expenditure in the profit and loss account relating to M/s 4R Millenium securities and his personal account except audit fee referred above. The assessee has credited the exempted income in his capital account. According to Ld A.R the expenditure claimed in the chemical division are related to the chemical business only and they are not related to the investment activities. When a specific query was asked as to whether all the three concerns may be operating from different addresses, the Ld A.R submitted that t....

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....llowance u/s 14A of the Act to Rs. 10,000/-. 6. The next three issues relate to disallowance made out of motor car expenses, travelling & conveyance expenses and telephone expenses. The AO held that these expenses would include personal element also and accordingly disallowed 10% of the claim. The Ld CIT(A) sustained the disallowance made out of Motor Car expenses and Travelling & Conveyance expenses. With regard to the telephone expenses, the Ld CIT(A) directed the AO to restrict disallowance to 10% of office telephone expenses and 90% of residential telephone expenses. The assessee is aggrieved by the said decision. 7. We have heard the parties and perused the record. With regard to the disallowance made out of Motor Car expenses an....