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2015 (2) TMI 975 - AT - Income TaxDisallowance of interest paid - CIT(A) deleting the addition - Held that:- As found from record that interest was paid by assessee in respect of term loan taken for purchase of immovable properties, which was utilized for the purpose of business. We found that the property was used for running of pre-schooling business by the assessee. As per the finding recorded by the CIT(A), the term loan was taken against mortgage of immovable properties which are used by assessee for the purpose of pre-schooling business, assessee was eligible for deduction of interest u/s.36(1)(iii). The findings recorded by CIT(A) have not been controverted. - Decided against revenue. Disallowance of foreign traveling expenses - CIT(A) deleting the addition - Held that:- Foreign travelling undertaken by assessee to various schools was in connection with pre-schooling business, significant expansion of the assessee’s pre-schooling business, introduction of private equity therein. A categorical finding recorded by CIT(A) to the effect that foreign travelling expenses were incurred wholly and exclusively for the purpose of assessee’s business which has not been controverted by learned DR by bringing any positive material on record. Accordingly, we do not find any infirmity in the order of CIT(A) for deleting the disallowance of travelling expenses. - Decided against revenue. Share transactions - Capital gain or business transaction - CIT(A) in respect of delivery based transactions of shares which were held as investment held that the gains so arose on sale of shares was liable to be taxed as capital gain tax - CIT(A) has also confirmed AO’s action with regard to loss of ₹ 59,64,109/- and treated the same as business loss instead of capital loss - Held that:- After analyzing the entire set of transactions the CIT(A) recorded detailed finding and reached to the conclusion that out of ₹ 1,01,89,029/- the assessee’s profit of ₹ 80,51,168/- was liable to be taxed as capital gain and balance as business income. The short term capital loss of ₹ 1,22,76,554/- was not accepted by the CIT(A) and he confirmed the action of the AO for treating the same as business loss. The CIT(A) has also directed the proportionate effect of interest pertaining to earning of short term capital gain as claimed in the profit and loss account is to be disallowed while working out the business income. After analyzing the series of transaction, the CIT(A) held that business income of ₹ 1,12,79,891/- from derivative transactions and ₹ 80,10,911/- shall be separately assessed in addition to the business income from delivery based share transaction. Thus, the CIT(A) has directed the AO to rework sale of shares held as investment by the assessee under the head short term capital gain and balance was directed to be assessed as business income. The detailed findings recorded by the CIT(A) are as per materials on record, has not been controverted by department by bringing any positive material on record. Accordingly, we do not find any reason to interfere in the order of CIT(A). - Decided against revenue.
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