TaxTMI 
TaxTMI 
2016 (8) TMI 993
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....-. 2. The Learned CIT(A) erred in confirming the order passed by the Assessing Officer in treating the business receipts as "Income from Other Sources" and disallowing the total expenses claimed. 3. The Learned AO erred in disallowing the expenses claimed in the business account against the business income. 4. The Learned CIT(A) erred in confirming the action of the AO in disallowing the expenses as per the P/L account consisting of various expenses such as audit fee, bank charges, conveyance expenses, depreciation, Car Insurance Charges, interest on loan and other expenses without any valid or cogent reasons". 3. The facts in brief are that, the assessee is a partner in the firm, M/s Gokul Constructions which was engaged in construction business and United Marine Pharmacy. During the year, the assessee derived income from share of profit and remuneration income from the firm, M/s Gokul Constructions and income from business. The AO noted that, assessee has claimed various expenses debited in the profit and loss accounts, the details of which are as under:- Sr. No. Expenses under separate heads Expenses claimed Rs. 1 Audit Fee 11,030 2 Bank charg....
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....te issued by Indian Medical Association dated 31.03.2001. This does not itself support appellant's claim that appellant was engaged in medical practice during the year under consideration. In view of this, I find no reason in interfering with the action of the AO in this regard. This ground of appeal is therefore decided against the appellant. As regards Ground no.2 taken by the appellant, I have carefully considered the assessment order and the submissions made for the appellant. In so far as the allowance of expenditure is concerned the AO has already allowed the interest expenditure as a nexus in earning that income. Therefore, in so far as the assessee was able to prove his claim, the Assessing Officer has allowed the deduction. However, as regards all other expenses claimed by the appellant, in the absence of any material produced either before the AO or before me, I do not find any reason to vitiate the order of the AO. Secondly, appellant was shown income of meager amount of Rs. 5,00,000/- against which he has claimed huge expenses like conveyance, depreciation etc. which has in turn an effect to reduce the taxable remuneration chargeable to tax. Thus, what is shown as in....
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....record. Thus, no disallowance of expenditure should be made on this ground. 7. On the other hand, Ld. DR strongly relied upon the order of the CIT(A). 8. We have heard the rival submissions and also perused the relevant finding given in the impugned orders as well as materials placed before us. The main dispute relates to disallowance of expenditure as claimed by the assessee in the profit and loss account and also treatment of the 'business income' as 'income from other sources'. The main allegation of the Ld. CIT(A) for disproving the medical income as business income is that, the assessee could not furnish any details or evidences before him. Such a finding of the Ld. CIT(A) has been disapproved/ rebutted by the Ld. Counsel by producing the certified copy of 'order sheet entries' of the first appellate proceedings, wherein, the Ld. CIT(A) himself had asked for the details of business income and expenditure. In response to the said order sheet entry dated 03.07.2013, the assessee had filed these details on 20th August, 2013. Further, from the perusal of the paper book submitted before us, it is seen that assessee had furnished copy of Ledger account of medical income giving....
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....(A). The reasoning given by AO and CIT(A) are exactly same, as has been given in the earlier case. 10. Here in this case also, the Ld. Counsel had filed the copy of order sheet-entry of the First Appellate Authority to controvert the finding of the ld. CIT(A). In this case also all the details of earning of business income as well as details and nature of expense incurred were filed along with the Ledger account before the ld.CIT(A). The break-up of expenditure as given before us are as under:- S. No. Details of Expenses Bank Cash Journal Entries Total 1 Audit Fees 11,030 - - 11,030 2 Bank Charges 14,525 - - 14,525 3 Bank interest 12,59,405 - - 12,59,405 4 Conveyance 2,44,427 - - 2,44,427 5 Depreciation - - 1,76,999 1,76,999 6 Insurance Car 24,517 - - 24,517 7 Interest on Loan 15,14,310 - 2,112 15,14,310 8 Loan processing charges 17,595 - - 17,595 9 Car Maintenance - 24,141 - 24,141 10 Membership Fees 26,000 - - 26,000 11 Professional Fees 65,000 - - 65,000 12....