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2015 (7) TMI 1308 - AT - Income TaxAddition made on account of provision for mark to market loss of the derivative transactions - Held that:- As decided in assessee's own case ITAT had been pleased to allow the appeal against disallowance of provisions for loss on mark to market basis in respect of trading in derivatives which included equity index and stock futures observing that the provisions reflected in substance is the loss arising on account of valuation of closing stock Disallowance made u/s. 14A r.w. Rule 8D - Held that:- It is an undisputed fact that assessee’s own funds are more than the investment. Therefore, the decision of the Hon’ble High Court of Bombay in the case of Reliance Utilities & Power Ltd. [2009 (1) TMI 4 - BOMBAY HIGH COURT] and HDFC Bank (2014 (8) TMI 119 - BOMBAY HIGH COURT) squarely apply. To this extent, no disallowance can be made. In A.Y. 2008-09, the Tribunal has accepted the suo moto disallowance @ 5% of dividend income. We find that in this year, the assessee has given a complete break-up of proportionate expenses allocated by it which is exhibited at page-71 of the Paper book. Except for this, all other facts are identical to the facts of assessment year 2008- 09. Since assessee has given a detailed break-up as mentioned hereinabove, we direct the AO to restrict the disallowance to ₹ 9,49,475/- as made by the assessee.
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