Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (2) TMI 739 - AT - Income TaxRejection of Long Term Capital Loss on the basis of Ownership of Capital Asset - disallowance u/s 36(1)(iii) interest on fund borrowed - disallowance of 10 % of exempt income u/s 14A - In the issue of Rejection of LTCL. Held that :- 'capital asset' means, 'property of any kind held by an assessee'. Therefore, it does not necessarily mean that the property, which the assessee holds, must be his own.And Surrender of rights of the assessee referred to above would amount to extinguishment of his rights in the land/capital asset and, therefore, it attracts capital gains/loss. decided in favour of Assessee. In the issue of disallowance u/s 36(1)(iii) Held that :- No separate disallowance under section 36(1)(iii) is required considering the same reason that the assessee has utilized the borrowed funds in investment of Rs. 150.83 million, otherwise that will be a double addition. Since the learned AR has not pressed ground relating to 14A, the addition to that extent becomes confirmed. No separate disallowance is required under section 36(1)(iii) on the same reason that the assessee has invested borrowed funds in investment of Rs. 150.83 million. We, therefore, delete the addition of Rs. 20,60,000.
|