Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2012 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (5) TMI 94 - HC - Income TaxGains/income from sale and purchase of securities – ITAT held to be assessable under the head “capital gains” and not under the head “income from business” – Held that:- CBDT in the Circular No.4/2007 dated 15th June, 2007 has elucidated and explained the tests which are to be applied to find out when income from transactions in shares/securities should be treated as “income from business” or the gain which has to be taxed under the head “capital gains” - it is apparent that the tribunal did not examine the said relevant aspects and aceepted the explanation of the assesee that there was no difference in tax rate - an order of remit to the tribunal to examine the issue holistically keeping in mind the parameters/tests - in favour of the Revenue. Deleting disallowance made by the AO under Section 14A – Held that:- An order of remit passed as Rule 8D of the Income Tax Rules, 1962 is not retrospective, but both the direct and indirect expenses in relation to exempt income have to be disallowed under Section 14A - it has been held that no direct or indirect expenditure whatsoever were incurred in relation to tax free income, but there is no finding to the said effect - merely, because the AO was wrong in making disallowance on ad hoc basis, cannot be a ground to hold that no amount whatsoever was relatable directly or indirectly to the earning of the tax free income - in favour of the revenue.
|