TaxTMI 
TaxTMI 
2023 (6) TMI 336
X X X X Extracts X X X X
X X X X Extracts X X X X
....l estate consultations. Assessee filed its return of income for A.Y. 2014-15 on 30.09.2014 declaring total income of Rs.40,26,526/-. The case was selected for scrutiny and thereafter assessment was framed u/s 143(3) of the Act vide order dated 26.12.2016 determining the total income at Rs.62,80,130/- by disallowing Rs.22,53,600/- u/s 14A of the Act. 4. Aggrieved by the order of AO, assessee carried the matter before CIT(A). CIT(A) upheld the order of AO and also made enhancement by observing as under: "4.6 It was found that the appellant, by creative/clever presentation of figures, claimed benefit of expenditure even against Income under the head House Property', against which no other expenditure (except expenditure prescri....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s ignoring depreciation is worked out below:- Sl No. Particulars of receipts Turnover % Amount of proportionate Expenses (in Rs.) 1. Taxable Income 9272028 46.66 1770548 2. Exempt/dividend 10601000 53.34 2024324 Income 19873028 100% 3794872 As worked out by the appellant Disallowance u/s 14A 2,24,324 Disallowance computation 1541272 Balance to be disallowed 483052 4.7.3 I find that the disallowance of Rs. 15,41,272/-, made by the appellant, consisted of, among other things, municipal tax paid on property let out on rent amounting to Rs. 7,98,073/- and other items. When propert....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n u/s 24 30% of Rs. 68,57,655/-. amounting to Rs. 20,57,297/. Income under this head Rs. 48,00,359/- (Rs. 68,57,655 20,57,297) 3. Exempt/dividend income 1,06,01,000 To be included for working out the turnover, as expenditure attributable to the same is to be proportionate Accordingly, the working submitted by the appellant at para 9 of submission dated 23.08.2017, should have been as follows - S. No Particulars of receipts Turnover % Amount of proportionate expenses (In Rs.) As worked out by the appellant As proposed by me As worked out by the appellant As proposed by me As worked out by the appellant As proposed by me 1 Taxable Income 92,72,028 16,16,300 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uantum of allocation of the expenditure between exempt and non- exempt incomes that has been found by me to be misleading and incorrect. It is established position of law that any other expenditure (except the expenditure detailed in section 24(a) and 24(b) of the Act). cannot be claimed further as expenditure from income 'Under the Head House Property' (i.e. rental income), as detailed above. This is precisely what the appellant has done. The same is detailed by me in my analysis above. As such, the method of allocation made by the appellant is not proper. The disallowance that should have been made is Rs. 31,74,341/-. as detailed by me earlier in this order, against the figure proposed by the AO at 22,53,600/-, and as offered by t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 3. That having regard to the facts and circumstances of the case, the disallowance is highly excessive and uncalled for. 4. That the Ld. CIT(A) erred in observing in observing in paragraph no. 4.73 on page 14 that I find that appellant had in this manner, been able to misguide the first appeal authority during appeal proceedings for A.Y 2012-13. in appeal No. 190/15-16/2167" and that these remarks may be expunged. 5. That various grounds are without prejudice to one another 6. That the assessee craves the leave to add, alter or amend the grounds of appeal in the course of hearing of the appeal." 7. The case file reveals that the present appeal was listed for hearing on various occasions and on all the o....