Case Law Details
Shilpa Shetty Kundra Vs DCIT (ITAT Mumbai)
It is observed that the assessee has already offered suo-moto disallowance of Rs.2.34 Lacs u/s 14A in her computation of income, which has been overlooked by the lower authorities. Another undisputed fact that emerges is that disallowance against average investments which have actually yielded exempt income during the impugned AY works out to Rs.0.84 Lacs which is less than suo-moto disallowance as offered by the assessee. It is further noted that the assessee has debited various expenditure aggregating to Rs.59.53 Lacs in the profit & loss account. The expenditure under the head commission & depreciation aggregate to Rs.54.24 Lacs whereas the balance expenditure under other heads aggregate to Rs.5.29 Lacs. The commission and depreciation have no nexus with earning of exempt income whereas out of balance expenditure of Rs.5.29 Lacs, the assessee has already offered suo-moto expenditure of Rs.2.34 Lacs. The same, in our opinion, was more than sufficient to cover up the requisite disallowance. Therefore, on the facts and circumstances of the case, the additional disallowance of Rs.8.95 Lacs as made by Ld. AO could not be sustained. By deleting the same, we allow the appeal.
FULL TEXT OF THE ITAT JUDGMENT
1. Aforesaid appeal by assessee for Assessment Year [AY] 2013-14 contest the order of Ld. Commissioner of Income-Tax (Appeals)-48, Mumbai, [CIT(A)], Appeal No. CIT(A) -48/I. T- 12/DCCC-2(3)/20 16-17 dated 29/08/2017 qua confirmation of disallowance u/s 1 4A.
2.1 Facts in brief are that the assessee being resident individual and a Film Actress by profession was assessed for impugned AY in scrutiny assessment u/s 143(3) on 29/03/2016 by Ld. Deputy Commissioner of Income Tax-Central Circle-2(3), Mumbai [AO] wherein the income of the assessee was determined at Rs.420.20 Lacs after sole disallowance u/s 14A for Rs.8.95 Lacs as against returned income of Rs. 411.25 Lacs e-filed by the assessee on 25/09/2013. The disallowance u/s 14A is the sole subject matter of present appeal before us.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
