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2015 (11) TMI 420 - AT - Income TaxSale of shares - LTCG or STCG - Held that:- Taking a consistent view The assessee is an investor not engaged in the business of sale purchase of shares and mutual funds. The question is accordingly decided against the Revenue both assessment year. The Assessing Officer is directed to treat her income from sale of shares and mutual funds in the two assessment years as short term capital gains and pass a consequential order. - Decided in favour of assessee. Disallowance of interest - CIT(A) allowed the claim - Held that:- There is no dispute with regard to the position of law that the expenditure not being in the nature of capital expenditure made out or extended wholly or exclusively for the purpose of earning interest income is allowable for deduction u/s.57 of the Act. The contentions of the assessee is that the interest paid to the banks in respect of over draft accounts was extended wholly and exclusively for the purpose of earning of the interest income. Therefore, it was required to be allowed. On the contrary, the Assessing Officer disallowed the claim on the basis that the facilities were not used for making investment in FD and sum was not wholly or exclusively for the purpose of earning of interest income of FDs. On the contrary, the ld. CIT(A) had given the finding that so far interest paid on bank overdraft with HSBC Bank, ICICI Bank and, PNB. The nexus has been established between the interest paid and interest earned. Therefore, we do not see any reason to interfere into this finding of ld. CIT(A). This ground of Revenue's appeal is rejected. - Decided in favour of assessee. Disallowance of deduction of total outgo for interest - Held that:- The assessee has demonstrated through accounts that the FD and OD facility was utilized for the purpose of making FDs only. Under these facts, we are of the considered view that the assessee is entitled for deduction of the interest income. Moreover, in the light of ratio laid down by the Hon'ble Apex Court in case of Keshavji Ravji & Co. vs. CIT (1990 (2) TMI 1 - SUPREME Court) and Hon'ble Gujarat High Court in case of CIT vs. Wintex Mills Ltd.(1999 (9) TMI 24 - GUJARAT High Court ), on the basis of principle of netting, the assessee was entitled for deduction in respect of the interest paid on overdraft account. Therefore, we hereby direct the Assessing Officer to delete the disallowance - Decided in favour of assessee.
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