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2016 (5) TMI 470 - AT - Income TaxSale of shares - Short Term Capital Gain OR business income - Held that:- It cannot be said that assessee was only a trader in shares because assessee has clearly demarcated the transactions in his books of account, which proves that he was an investor in shares and securities upto end of F.Y. 2006-07 and commenced the business of shares and securities during Asst. Year 2008-09 i.e. F.Y. 2007-08. However, shares and securities held upto 31.3.2007 were sold during financial year 2007-08 and income earned from sale of such investments were shown as short term and long term capital gain. We, therefore, hold that the short term capital gain should be accepted and there is no reason to interfere with the order of ld. CIT(A) and we uphold the same - Decided against revenue Addition made u/s 14A r.w. rule 8D - Held that:- AO has just made an estimated disallowance u/s 14A r.w.rule 8D at ₹ 11,598/- without examining the books of account so to satisfy himself with expenditure incurred in relation to earning dividend income which has not been added back by the assessee neither he has made a proper calculation with respect to provisions of section 14A r.w.rule 8D. We, therefore, are of the view that ld. CIT(A) has rightly deleted the disallowance of ₹ 11,598/- u/s 14A r. w. rule 8D as Assessing Officer has made ad hoc disallowance of equal amount of the exempt income at ₹ 11,598/- - Decided against revenue
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