TaxTMI 
TaxTMI 
2014 (12) TMI 1383
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....have carefully considered the assessment order and submissions thereof. The facts of the case as per assessment order are that the assessee had claimed TDS amounting to Rs. 4,236/- against which the interest income of Rs. 23,170/- has been shown on receipt basis. The AO, therefore, gave credit for the TDS pertaining to the income of Rs. 23,170/- and disallowed TDS credit for the balance amount of Rs. 1,909/-. The appellant has claimed that the TDS credit of the entire amount i.e. Rs. 4,236/- should be allowed even though income pertaining to the TDS has not been reflected in the relevant assessment year. 4.2 The disallowance of TDS credit made by the Assessing Officer is in accordance with the provisions of section 199 read with Rule 37B....
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.... in the succeeding assessment year." 4. Having regard to the above, the claim is bereft of merit and thus rejected. 5. Ground No. 2 relates to disallowance of Rs. 46,953/- out of electricity expenses. The assessee claimed expenditure on account of electricity of Rs. 52,170/- pertaining to his residence, which was disallowed as personal expenditure. The ld CIT(A) restricted the disallowance to 90% of the expenditure i.e. Rs. 46,953/-, the remaining 10% was allowed. The ld CIT(A) has held as under:- "5.1 I have carefully considered the assessment order and submissions thereof. The facts of the case as per assessment order are that the Assessing Officer disallowed the claim of the electricity expenses pertaining to the residence of th....
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....ses of the residence. So, this ground is partly allowed. 7. Ground No.3 relates to disallowance of Rs. 1,15,230/- out of client development expenses of Rs. 11,52,302/-. 8. The AO and the ld CIT(A) have sustained disallowance as personal expenditure. Having considered the rival submission, we find the ld CIT(A) has examined the nature of the expenditure and the disallowance made vis-a-vis the evidence furnished. And he has come to the conclusion as under:- "6.1 I have carefully considered the assessment order and submissions thereof. The of the case as per assessment order are that the assessee had claimed Rs. 11,52,302/- as client development expenses. The Assessing Officer disallowed 10% of these expenses i.e. Rs. 1,15,230/- on th....
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....s recorded his satisfaction before resorting to Rule 8D. Moreover he further has held as under:- "7.3 Perusal of the assessment order shows that the Assessing Officer has expressed his satisfaction before taking recourse to rule 8. Further, on careful examination of the matter, I find that any income, whether exempt or not, can only be earned after incurring some expenditure. In the case of the appellant, such expenditure cannot be segregated in the accounts of the assessee and is clubbed with overall administrative/ financial and other expenses of the business as a whole. If any income is exempt from tax because it is not included in the total income by virtue of section 10 of the Income-tax Act, 1961, section 14A of the Act prohibits a....