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2017 (2) TMI 1483 - AT - Income TaxDisallowance on account of loss from stock market activity claimed as ‘set off’ against the profit from money market activity - whether the transactions carried out by the assessee of trading of money market securities was speculative or non-speculative in nature? - HELD THAT:- As demonstrated with the help of various evidences in the paper book in the form of contract notes and other documents to show that no deliveries were exchanged and only ‘difference’ amount was settled. Our attention was drawn on the ledger account containing details of trading of money market transactions showing that in all the cases only ‘difference’ amount of sale or purchase of money market securities has been credited or debited in the assessee’s a/c by the broker. These evidences have not been controverted by the Ld. Special Counsel of the Revenue. Thus, the admitted facts brought on record are that no deliveries were exchanged for carrying out money market transactions by the assessee. It is noted that in the identical circumstances ITAT in the case of Group companies of the assessee namely M/s. Growmore Leasing Investment [2015 (3) TMI 1342 - ITAT MUMBAI] held that such transactions would be speculated transactions. Loss/profit from shares market transactions can very well be set off/adjusted against loss/profit of money market transactions. This issue has already been decided in favour of the assessee by the Tribunal in the case of group company of the assessee namely M/s. Growmore Leasing Investment (supra) as discussed above also. No distinction has been pointed out on facts or legal position by the Ld. Special Counsel of the Revenue, therefore we find that the claim of the assessee is allowable. Therefore disallowance made by the AO is directed to be deleted. Thus, ground no.2 is allowed. Addition towards maintenance of accounts - disallowance was made by the lower authorities on the ground that the assessee was not able to prove rendering of service with regard to payment claimed to be made to one ABCD Group which refers to ‘Account Backlog Clearance Department’ - HELD THAT:- It is noted that the assessee has claimed that payment was made to the said ABCD group for clearing of backlog of accounting work. But, neither the assessee was able to show that payment was made nor the assessee was able to show anything to prove rendering of services by the payee. Thus, it could be substantiated by the assessee that this amount was incurred for the business purpose of the assessee; if at all this amount was genuinely paid. Therefore, in absence of proper substantiation, this claim is found to be not allowable. Therefore, we decline to interfere in the order passed by the lower authorities on this issue. This ground is rejected. Depreciation on the computer - addition on the ground that user of the computers could not be proved by the assessee during the year before us - HELD THAT:- Appellant had placed order for computer system on 31.3.90 for which advance payment was made and the delivery of the System was affected on 31.3.90. In view of the above, there is no reason to reject the claim for depreciation on the computer. We agree with the Ld. CIT(A) in the order given in the first round that there was no reason to deny claim of depreciation on the computer. After taking into account overall facts and circumstances of the case, we agree with the observation and views given by the Ld. CIT(A) in the first round and therefore, delete the disallowance made by the AO in this regard. Deduction on account of interest payable to the brokerage firms - HELD THAT:- As relying on own case [2015 (3) TMI 1342 - ITAT MUMBAI] we send this issue back to the file of Ld. CIT(A) for fresh adjudication after giving adequate opportunity of being heard to the assessee. Ld. CIT(A) shall follow the directions as have been given in the aforesaid order. This ground may be treated as allowed for statistical purposes. Levy for interest u/s 234A, 234B, 234C - HELD THAT:- We find force in the prayer made by the Ld. counsel and accordingly hold that levy of interest is consequential u/s 234A, 234B and 234C; but restore this issue back to the file of the AO for computing the interest after giving credit of amount of TDS and AO shall follow the directions as have been given by the Tribunal in the case of group company namely M/s. Harsh Estates Pvt. Ltd. [2014 (10) TMI 925 - ITAT MUMBAI]. Thus, these grounds are sent back to the file of the AO with the same directions as given above and may be treated as allowed for statistical purposes.
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