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2017 (1) TMI 1637 - AT - Income TaxNature of loss - trading loss on the units of Principal Index Mutual Fund (PIF) - Short Term Capital Loss or business loss - Held that:- The assessee fairly submitted that this issue needs to revisit the file of the CIT (A) for the reason of following and complying with the contents of CBDT Circular 6/2016, dated 29.2.2016. After hearing both the parties, we find merit in the Ld AR's argument and remand this issue to the file of the CIT (A) for applying the contents of para 3(a) of the said Circular (supra) TDS u/s 194A - non deduction of tds on interest payments - Held that:- Both the parties explained the facts and submitted that the Board Circular No.6/2016, dated 17.06.2016 was not appreciated by the CIT (A). It was fairly submitted that the said Circular was issued recently before the finalization or adjudication of the issues by the CIT (A). Ld AR also brought our attention to the decisions of the Tribunal in the assessee's own case for the AY 2010-2011 and AY 2008-2009 and submitted that these orders of the Tribunal were also not available to the CIT (A) at the relevant point of time. Considering the subsequent development, we find, the issue raised in ground no.2, in principle, is allowed. However, for examining the facts of the case, we remand this issue to the file of the CIT (A) to decide the issue afresh after affording a reasonable opportunity of being heard to the assessee Disallowance u/s 14A read with Rule 8D(2)(iii) - Held that:- It is a settled legal proposition at our level that the average investment desires exclusion of the non-dividend yielding investments in view of ACB India Limited vs. DCIT [2015 (4) TMI 224 - DELHI HIGH COURT] and Coal India Limited [2015 (5) TMI 843 - ITAT KOLKATA]. Therefore, in our opinion, the assessee is entitled to relief on this argument. Accordingly, the relevant grounds raised by the assessee are required to be allowed in principle. We order accordingly and direct the AO to re-calculate the disallowance under Rule 8D(2)(iii) of the Rules
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