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2014 (8) TMI 155 - ITAT MUMBAIRestriction of disallowance u/s 14A r.w. Rule 8D - Unsubstantiated purchase price, unsubstantiated sale value of shares as well as the value of investments in shares – Held that:- No details of shares held as investments and shares held as stock-in-trade has been furnished - the assessee has been purchasing and selling shares of Private Limited Companies - a person can only invest in shares of a Private Limited Co. and cannot trade in the shares of a Private Limited Company - no details have been brought on record in respect of shares held as stock-in-trade, there was no error in the computation of the disallowance made u/s. 14A r.w. Rule 8D by the AO – the order of the CIT(A) is set aside. Assessee’s nature of business as claimed is trading in shares - Whatever little details are available from the assessment order show that the assessee is purchasing and selling shares of a Private Limited Company and claiming it to be its business activity – it could not be understood as to how can a person trade in shares of a Private Limited Company - This aspect has not even considered by the AO during the course of the assessment proceedings nor the CIT(A) cared to apply his mind on the nature of activity of the assessee before deleting the addition of Rs. One crore - thus, the matter is remitted back to the AO for verification of nature of business activity – Decided partly in favour of Revenue.
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