Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (4) TMI 1052 - ITAT AHMEDABADUnexplained cash - HELD THAT:- CIT(A) has recorded the cash balance as per cash books as on 17.12.2014 in both the companies were more the cash found which is against the cash balance as on 17.12.2014 which stood explained as per the books of accounts. Therefore the addition surely required to be deleted. When the Assessing Officer doubted the cash books of the assessee and its sister concern the addition made by the A.O. is not sustainable in law. revenue could not bring on record any contra statements as observed by the Ld. CIT(A). Decided against revenue. Disallowance made u/s. 14A r.w. Rule 8D - Suo moto disallowance made by assessee - CIT-A held that the disallowance u/s. 14A to the extent of exempt income received by the assessee by way of dividend income- HELD THAT:- It is now settled principle of law the disallowance made u/s. 14A is restricted to the exempt (dividend) income received by the assessee - no hesitation in sustaining the order passed by the Ld. CIT(A), restricting the disallowance to the exempt income received by the assessee during the financial year. Thus the grounds raised by the Revenue is devoid of merits and liable to be dismissed. Losses booked under penny stocks on sale of shares - HELD THAT:- A.O. made the disallowance without documentary proof whereas the assessee proved the genuineness of the transactions and established on online trading platforms and it had no control whatsoever on share prices and thus incurred losses in shares The assessee is a retaining Kappac Pharma shares as stock-in-trade and the closing stock is valued at the market rate. Since the market rate is lower it has incurred a business loss though the shares are not sold. The difference is only because of valuation of shares which is as per the Accounting Standard and the share of Kappac Pharma are still forming part of closing stock of the assessee company as on 31.03.2019. Thus, we have no hesitation in deleting the disallowance made by the A.O. which was correctly deleted by the Ld. CIT(A). Thus the grounds raised by the Revenue is without any basis and the same is liable to be rejected. Appeal filed by the Revenue is hereby dismissed.
|