TaxTMI 
TaxTMI 
2011 (3) TMI 1615
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Ld. CIT(A) erred in deleting the disallowance of brokerage and commission expenses of Rs. 3,65,408/- made by the A.O. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the disallowance of professional fees expenses of Rs. 8,90,000/- made by the A.O. 3. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the disallowance of Rs. 8,00,000/-towards loss on account of auction bidding made by the A.O. as not having incurred wholly and exclusively for business purpose. 4. On the facts and circumstances of the case and in law, the Ld.CIT(A) erred in confirming the disallowance to the extent of 3% of dividend income, i.e. Rs. 4,47,000/- u/s.14A of the Act holding ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ence of any mention by the Assessing Officer in his order about the exact nature of details and evidences called for by him, which the assessee did not furnish, the learned CIT(A) held that the disallowance of 10% made by the Assessing Officer out of commission and brokerage was liable to be deleted being without any basis. 4. After considering the rival submissions and perusing the material on record, we find no infirmity in the impugned order of the learned CIT(A) deleting the ad hoc disallowance of 10% made by the Assessing Officer out of commission and brokerage expenses claimed by the assessee. If the nature of the business of the assessee is taken into consideration, there was no reason to doubt the genuineness of the expenses incu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....details before the Assessing Officer during the course of assessment proceedings. According to the Assessing Officer, complete details of the payment of Rs. 7,50,000/- paid to M/s. Stock Consultants Pvt. Ltd., however, were not furnished by the assessee, and even the documentary evidence in respect of other payment of Rs. 1,40,000/- was also not filed. He, therefore, disallowed the expenses claimed by the assessee on professional fees to the extent of Rs. 8,90,000/-. The learned CIT(A), however, deleted the said disallowance on the ground that proper case was not made out by the Assessing Officer to justify the same. He noted from the order of the Assessing Officer that there was no mention as to what evidence was needed by the Assessing Of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....same was not well founded. Ground No. 2 of the Revenue's appeal is accordingly dismissed. 7. As regards the issue raised in ground No. 3, it is observed that a sum of Rs. 8,00,000/- was claimed by the assessee on account of loss on auction bidding. In support of the said claim, it was submitted on behalf of the assessee before the Assessing Officer that it was planning to do property related business and accordingly bided for the purchase of property in auction. It was submitted that the said bidding amount, however, was forfeited and the assessee company incurred a loss of Rs. 8,00,000/- which was claimed as business loss. According to the Assessing Officer, the said loss claimed to be incurred by the assessee, however, was not related ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....spect which is relevant. Incidentally, the said loss claimed by the assessee was disallowed by the Assessing Officer on the ground that the same was not related to the business of the assessee of making investment and trading in shares and securities. The Learned CIT(A), in our opinion, therefore, was not correct to say that there was no reason given by the Assessing officer to disallow the loss claimed by the assessee in auction bidding. In our opinion, it is pertinent to ascertain as to whether the assessee was also engaged in he property related business so as to consider the allowability of its claim for loss on auction bidding and since neither the Assessing Officer nor the Learned CIT(A) has gone into this aspect, we restore this issu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mplex and it requires administrative and managerial expertise to purchase maintain and dispose off such investments. In view of this same amount of the administrative and managerial expenses are definitely attributable to the exempted dividend income. However, the A.O. is not correct in the method applied by him to work out the expenditure to be disallowed u/s.14A. Taking into consideration of all facts it will be reasonable disallow 3% of the dividend income which works out to Rs. 4,47,000/- as administrative and other expenses attributable to earning of such income. The disallowance of Rs. 4,47,000/- is therefore confirmed. The appellant would get relief of balance amount of addition on this issue." 11. The Learned CIT(A) thus sustaine....