Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (5) TMI 925 - AT - Income TaxDisallowance under section 14A - CIT(A) deleted part disallowance - Held that:- the disallowance of ₹ 5,00,000/- made by the AO was on ad hoc estimate basis, and the CIT(A) also sustained ₹ 50,000/- out of the same on ad hoc estimate basis. The DR could not bring any material before us to show that any amount more than ₹ 50,000/- was incurred by the assessee for earning of dividend income. Therefore, we do not find any good reason to interfere with the estimate made by the CIT(A). - Decided against revenue. Disallowance under section 14A at the rate 5% of the dividend income - Held that:- It shall meet ends of justice to restrict the disallowance under section 14A at the rate of 2% of the dividend income earned during the year by the assesse - Decided partly in favour of assesse. Transaction in shares - short term capital gains or business income - Held that:- No material has been brought before us to show, what was the frequency of the transaction in question. It is not the case of the Revenue that any borrowed fund was utilized for acquiring shares or units of mutual funds under consideration. In our considered view, the intention of the assessee at the time of acquiring shares of mutual fund has to be ascertained by taking into consideration all the relevant factors, like utilization of borrowed funds, frequency of transaction, volume of transaction, manner in which the acquisition is reflected in the financial statements etc. No single factor is determinative of actual nature of the transaction. In the absence of any material brought before us by the Revenue to show that same shares or the units of mutual funds were frequently purchased and sold, on which short term capital gain was claimed by the assessee, or that no borrowed funds was utilized by the assessee in acquiring the shares and units in question, we do not find any good reason to interfere with the order of the CIT(A) accepting the income shown as short term capital gains. - Decided against revenue. Disallowance of deduction of preliminary expenses under section 35D - CIT(A) allowed the claim - Held that:- In the instant case, it is not in dispute that the expenditure in respect of which the deduction was claimed by the assessee under section 35D was incurred after 31st March, 1998. Thus, in any view of the matter, the deduction is to be allowed to the assessee for five years only. The assessee has submitted that deduction has already been allowed for five years to it, and of course at the rate of 10% and not at the rate of 20%. Be that as it may, the year under consideration being 6th and 7th year, the deduction under section 35D is not allowable to the assessee in view of the proviso quoted above - Decided in favour of assesse. Addition of provision for doubtful loans while computing book profit u/s.115JB - CIT(A) deleted the addition - Held that:- Set aside the orders of the lower authorities on this issue, and remit the matter back to the file of AO for deciding the issue afresh in the light of the above cited decision of CIT Vs. Yokogawa India Ltd.[2011 (8) TMI 766 - KARNATAKA HIGH COURT ] after verifying the facts of the instant case. It is needless to mention that the AO shall allow reasonable opportunity of hearing to the assessee before deciding the issue afresh. - Decided in favour of Revenue for statistical purpose.
|