Asseesee claimed 24 lakh Agri. Income with nil expenses.
We calculated his Agri income 5 lakh based on extent of land cultivated as per revenue Dept documents patta chitta adangal. We got the production and expenditure details per acre from the agriculture Dept. Calculated as
Land extent * production per acre * price of crop and subtracted the expenses as per the details given by agriculture Dept.
Gross Agri income- 5 lakh, expenses- 1.5 lakh , Net Agri income- 3.5 lakh.
Now ACIT asked me to calculate 14A disallowance. Kya yha 14A applicable h ? According to me, No. Kyuki 14A ki 1st line me ye likha h if AO satisfied that the claim of expenses in books of the asseesee is wrong , or there are no expense at all for earning the exempt income. Here claim of asseesee outrightly rejected n we ourselves have calculated the expenses.
Throw some light!!
It is within the power of AO.
As per 14A(3) --
""
(3) The provisions of sub-section (2) shall also apply in relation to a case where an assessee claims that no expenditure has been incurred by him in relation to income which does not form part of the total income under this Act .""
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