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2015 (9) TMI 1177 - AT - Income TaxRevision u/s 263 - Disallowance u/s 14A - Held that:- We find force into the contention of the ld.counsel for the assessee that the ld.CIT was not justified in terming the order of the AO as erroneous and prejudicial to the interests of the Revenue. The assessee has demonstrated that investments were made out of interest-free funds. Under these facts, the ld.CIT(A) was not justified to restore the issue with regard to disallowance of expenditure u/s.14A of the Act to the file of AO for fresh decision. In respect of Long term capital loss, it is demonstrated by the assessee that investments in government securities, is normal business activity of the assessee Any profit or loss from the sale of ‘investment’ is taxed under the head ‘Capital gain’, such profit or loss from the sale of ‘stock-in-trade’ is considered under the head “profits and gains of business or profession”. The instant loss of ₹ 77,000, arising from the sale of stock-in-trade referred to as “current investments”, in our considered opinion has been rightly held by the learned CIT(A) to be a business loss. Accordingly this ground is not accepted. In the present case, the assessee has shown the investment as stock-in-trade as noted by the ld.CIT that the security was sold within one year and three months of the purchase that it shows that it was not the permanent investment of the bank as the bank has not waited till the maturity of the security. Therefore, in our considered view, the ld.CIT was not justified in exercising her jurisdiction u/s.263 of the Act - Decided in favour of assessee.
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