TaxTMI 
TaxTMI 
2023 (6) TMI 276
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.... case and in law, the Learned Commissioner of Income Tax (Appeals), Delhi [hereinafter referred to as 'Ld. CIT(A)'] has grossly erred in upholding and not deleting the addition of Rs. 13,27,995 as computed by the learned Income Tax Officer, Ward 61(1), Delhi [hereinafter referred to as the 'Ld. DCIT'] vide order dated 05.03.2021 passed under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') 2. That the Ld. CIT(A) grossly erred in law in not holding that the amount received by the Appellant as a partner in a partnership firm was assessable under the head "Profits and Gains from Business and Profession" under section 28(v) of the Act and as such the expenses incurred to earn the same were allowable as a deduc....
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....reciate the fact that it is not practically possible to bifurcate the expenses incurred by the Appellant and under the provisions of Income Tax Act, 1961, it is nowhere required to provide bifurcation of expenses which were incurred against the incomes which are taxable under the same head i.e., under Income from Profits and Gains of Business or Profession. 7. That on the facts and the circumstances of the case and in law, the Ld. CIT(A) has failed to appreciate the fact that the provisions of Section 44ADA of Act should be equally applicable on "Remuneration Income" as received by the Appellant as a partner in the partnership firm apart from the other professional receipts of the Appellant, earned in his individual capacity. 8. That th....
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....essment u/s 143(3) read with sections 143(3A) & 143(3B) of the Income-tax Act, 1961 (the "Act") at an income of Rs. 22,51,450/-, inter alia, by observing as under: "Disallowances: During the scrutiny proceedings, the assessee has submitted details of expenditures of Rs. 14,49,445/- which are claimed to have been incurred for (i) earning remuneration of Rs. 21,30,000/- from the firm, Vikas Kochhar and associates and (ii) other professional receipts of Rs. 2,42,900/-. The assessee was required to explain the expenditures which are wholly and exclusively incurred for earning the remuneration of Rs. 21,30,000/-. The assessee explained that he cannot bifurcate the expenses incurred wholly and exclusively for earning remuneration of Rs. 21,30,0....
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....ation from partnership firm as well as professional receipts in individual capacity. During the year under consideration, the appellant has gross receipt of Rs. 23,72,9001- which includes Rs. 21,30,000/- as remuneration/salary from the firm and Rs. 2,42,9001- as other professional receipts. The appellant also claimed expenses of Rs. 14,49,445/- to earn the said incomes. Further, the appellant also stated during the course of assessment proceedings that the bifurcation of expenses between for earning remuneration from firm and for professional receipts in individual capacity. The appellant during the appellate proceedings, submitted the copies of invoices in support of claim of his expenses. 6.2 In this context, it is pertinent to mention ....
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....e remuneration from the firm, the undersigned find that the AO has correctly disallowed the expenses claimed by the appellant and allowed the deduction out of his individual professional receipts to the maximum extent as per the provision of section 44ADA of the Act i.e. 50% of total receipts. Therefore, there is no occasion to interfere in the order passed by the AO. Accordingly, the grounds related to disallowance of expenses claimed are dismissed. 7. The appellant raised another ground against the interest charged u/s. 234B & 234C of the Act. In this regard, it is pertinent to mention that the charging of interest u/s. 234B & 234C are mandatory in nature and there is no description in the matter as held by Hon'ble Apex Court in the cas....