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2016 (4) TMI 657 - AT - Income TaxDisallowance u/s u/s 14A r.w. Rule 8D(2)(iii) - Held that:- The facts as emanate from the record are that the assessee earned dividend income of ₹ 75,150/- which was exempt u/s 10(34) of the Act. As can be seen from the impugned order, the assessee had in fact submitted before the Ld.CIT(A) that she credited the exempt dividend income to her capital account for the relevant period and had claimed expenditure therein on account of delivery charges (Rs.1,519/-) , demat charges (Rs.10,621/-) , Stamp charges (Rs. 7,577/-) and Securities transaction (Rs. 72,415/-) charges and it was in these circumstances that no separate claim was put forth in the profit and loss account which reflected the derivative transactions of the assessee. In the factual matrix of the case, as laid out above, we concur with the averments of the AO without examination of the assessee’s accounts and recording that he is not satisfied with the assessee’s claim, proceeded on the factually erroneous conclusion that no expenditure was debited in respect of the earning of the assessee’s exempt dividend income, to make the disallowance u/s 14A r.w. Rule 8D; which was not warranted. We agree with the plea of the assessee that since it had already claimed expenditure incurred (supra) for earning the exempt dividend income of ₹ 75,150/-, the further disallowance of ₹ 34,292/- made by the Assessing Officer u/s 14A r.w. Rule 8D was not called for - Decided in favour of assessee Sale of short term capital assets - 'capital gains’ OR 'business income’ - Held that:- Following the aforesaid decision of the co-ordinate bench in the assesses own case for Asst. year 2006-07, since the facts of the matter are similar in this year also, we set aside the order of the Ld. CIT(A) and direct the Assessing Officer to assess the capital gains arising from sale of shares (i.e. Short term capital assets) as ‘STCG. only and not as ‘ business income’
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