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2022 (8) TMI 1376 - AT - Income TaxDisallowance u/s 14A - assessee has earned dividend income which has been reflected under the head “other income” in the P&L account - CIT(A) determined the disallowance @ 0.5% of the average investment - HELD THAT:- As gone through the submissions of the ld. DR and find that the amendment has been brought by the Finance Bill 2022 which is prospective in nature. Hence, we hold that, the amount of disallowance u/s 14A of the I.T. Act needs to be restricted to the extent of exempted income earned (Rs. 50,000/-) during the relevant assessment year. The appeal of the Revenue on this ground is dismissed and the appeal of the assessee is allowed. Conversion of investment - Capital gain of sale of shares etc. - appellant company has transferred the entire investment to Stock-in-Trade - to be considered as business income or capital gain - HELD THAT:- As we find that the ld. CIT(A) has affirmed the action of the AO in treating the amount as income from capital gains. Since, the arguments put forward before us are similar to the arguments before the ld. CIT(A), after going through the entire issue, we hereby confirm the action of the ld. CIT(A). However, we find that the revenue has taken up a ground with regard to the applicability of Section 45(2) which do not emanate either from the order of the ld. CIT(A) or from the Assessment Order. Since, we have confirmed the orders of the revenue, no adjudication on the ground no. 4 is called for.
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