Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 427 - AT - Income TaxTreatment of income – Capital gain or business income – Assessee Trader or investor in shares – Held that:- The decision in Asst. Commissioner of Income Tax Versus M/s Passionate Investments Management Pvt. Ltd. [2013 (8) TMI 136 - ITAT MUMBAI] followed - the total number of transaction is 68 out of which 40 transactions relate to LTCG - 15 transactions relate to STCG and 30 transactions relate to close out transaction of STCG - The total number of scrips dealt by the assessee is 26 - average holding period for capital gains is 37 days or 1.75 years - The average holding period for STCG is 217 days – revenue has accepted the profit under the head capital gain - the reasoning given by the AO and the Commissioner (Appeals) are akin to that of the earlier years – the order of the CIT(A) is upheld that the income derived by the assessee from the transactions of the shares is to be taxed under the head “capital gain” and not “income from business” – Decided against Revenue. Restriction of disallowance u/s 14A r.w. Rule 8D of the Act – Administrative expenses – Held that:- The assessee submitted that the working of computation of disallowance and also the expenses which can be said to be directly attributable to the other business activities – CIT(A) was of the view that the AO should disallow the administrative expenditure as per rule 8D(2)(iii), the disallowance should not exceed the total administrative expenditure incurred – there was no infirmity in the order passed by the CIT(A) as the disallowance u/s 14A, cannot exceed the total administrative expenditure debited by the assessee in the Profit & Loss account - Even under the formula given in rule 8D, the disallowance cannot exceed the overall expenditure claimed in the Profit & Loss account – Decided against Revenue.
|