TaxTMI 
TaxTMI 
2020 (12) TMI 208
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.... dispute, I proceed to dispose of the appeal ex-parte qua the assessee after hearing the ld. Departmental Representative and on the basis of materials available on record. 3. In Ground No. 1 to 1.2, the assessee has challenged the disallowance of Rs. 2,03,746/- made under section 14A r.w.r 8D of the Act. 4. Briefly the facts are, the assessee is an individual. As stated by the Assessing Officer, the assessee is engaged in running a placement agency in the name and style of 'Search & Inspire'. For the Assessment Year under dispute, the assessee filed her return of income on 08.09.2012 declaring total income of Rs. 34,72,769/-. During the assessment proceeding, the Assessing Officer noticed that in the year under consideration, the asse....
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....e is concerned, I find substantial force in the contention of the assessee. Undisputedly, during the year under consideration the assessee had earned an amount of Rs. 1,302/- as exempt income, whereas, the Assessing Officer has disallowed an amount of Rs. 2,03,746/-. Now, it is fairly well-settled, by virtue of ratio laid down in a plethora of judicial precedents that disallowance under section 14A r.w.r 8D cannot exceed the quantum of exempt income earned during the year. In conformity with the settled legal position, I direct the Assessing Officer to restrict the disallowance under section 14A r.w.r 8D to Rs. 1,302/-. Consequently, Ground No. 1 & 1.1 are dismissed. Whereas, ground No.1.2 is allowed. 6. In Ground No. 1.3, the assessee h....
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....s offered income under the head "Business & Profession". Therefore, it has to be accepted that the assessee must be having a office set-up to carry on her business activity. That being the case, services of office Peon is essentially required. It is also not a fact that the assessee has failed to produce any supporting evidence. The assessee did produce supporting salary vouchers, however, they were rejected only on the ground that they are undated, though as per assessee's version, the month for which the salary was paid has been mentioned in the voucher. Be that as it may, no further enquiry was conducted by the Assessing Officer to ascertain whether the concerned persons were at all working with the assessee or not. In view of the afo....
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....he entire expenditure was wholly and exclusively incurred for the purpose of business. Alleging involvement of personal factor, the Assessing Officer disallowed 25% out of the expenditure claimed, which worked out to Rs. 49,057/-. The aforesaid disallowance was also sustained by ld. CIT(A). 13. I have heard the ld. Departmental Representative and perused the material available on record. As could be seen from the submissions made by the assessee before the Departmental Authorities, the conveyance expenditure was incurred for travelling in Taxi, Auto, Bus etc. by the assessee as well as the staff members for official work. It is also evident, the disallowance made by the Assessing Officer is only for the reason that a part of the expendit....