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2011 (8) TMI 259 - AT - Income TaxDisallowance - Expenses of commission and brokerage - Assessee established the genuineness of payment of commission/brokerage by furnishing PAN details of brokers and all of them reflected brokerage in their individual returns, the ld. CIT(A) allowed the claim - Decided in favour of assessee. Keyman insurance premium - mercantile system of accounting - benefit of the same was availed for a longer period - Since the liability had arisen in the previous year and it was a single premium policy in respect of which the agreement with insurance company had been entered in to by the assessee, expenses to be allowed in the year when paid. Incentive payment to staff - Genuineness of payment was not doubted while deduction was allowed on account of similar payment in the preceding year - Expenses allowed. Treatment of capital gains as business income - Long term capital gain and short term capital gain was earned on sale of mutual funds and a small amount represented from bonds and equity shares - Since the shares and mutual funds were shown as investments in balance sheet, the ld. CIT(A) concluded that that there was no justification for treating the said income as business income - Revenue did not place any material before us in order to controvert these findings of facts recorded by the ld. CIT(A) nor placed any such material, evidencing that the assessee was carrying on the business of trading in shares, so as to enable us to take a different view in the matter - Decided in favour of assessee.
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