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2010 (10) TMI 784 - AT - Income TaxBusiness income Vs. Capital gain - Assessee had shown income under the head 'short term capital gains' amounting to Rs.7,112/- and long term capital loss of Rs.11,15,745/- which has been carried forward for adjustment against future long term capital gains - e neither the Assessing Officer nor the Ld. Departmental Representative of the revenue could bring anything on record to show that the assessee was engaged in the business of purchase and sale of shares on regular basis and hence merely because as per the object clause of the Memorandum of Association, the assessee can deal in shares, it cannot be held that any transaction by the assessee for purchase of shares or for sale of shares, purchased in earlier years is a business transaction. Regarding disallowance u/s 14A - Rule 8D - Rule 8D was not applicable for the concerned year. For that proposition he relied upon the Hon'ble Mumbai High Court decision in the case of Godrej Boyce Mfg. Co. Ltd. vs. DCIT (2010 (8) TMI 77 - BOMBAY HIGH COURT). In this case it was held that Rule 8 D has been notified on 24.3.2008 and will be applicable only from Assessment year 2008-09.
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