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2017 (1) TMI 614 - AT - Income TaxAddition made on account of claim of reduction in value of investment as business loss which was stock-in-trade - Held that:- We find from the above facts that the assessee held these securities as current investments as stock-in-trade and, therefore, provisions made for depreciation in the value of securities as allowable as deduction and this supports by the following facts:- i) Securities are purchased and sold in the course of carrying on business of the assessee. Securities are held for trading as is evident from the sale made in the subsequent year as explained. ii) The treatment of securities is same in the subsequent years. The appellants have prepared the accounts on an accrual basis of accounting complying with the prescribed accounting standards as certified by the auditors. iii) As per the RBI prudential norms read with AS 13, current investments are stated at carrying value as at the year and at lower of the cost and market value. iv) Such valuation of closing stock of securities is as per section 145 and 145A of the Act. In view of the above facts and circumstances, we are of the view that the allowability of deduction u/s 37(1) of the Act and deduction for the provisions for depreciation the assessee is entitled to. Thus we confirm the order of the CIT (A) deleting the addition made by the AO and dismiss the appeal of the Revenue - Decided in favour of assessee Disallowance of expenses relatable to exempt income by invoking the provisions of Section 14A of the Act read with Rule 8D - Held that:- We find that assessee has not claimed any exempt income and hence this issue is covered in favour of assessee by the decision of Hon’ble Delhi High Court in the case of Cheminvest ltd. (2015 (9) TMI 238 - DELHI HIGH COURT), wherein it is held that if there is no exempted income claimed by the assessee, no disallowance can be made by invoking the provisions of Section 14A read with Rule 8D of the Rules. - Decided in favour of assessee Disallowance of tds credit - Held that:- The assessee fairly stated that he is ready to produce evidences before AO and AO may be directed to verify the same and allow credit for TDS. We find no reason not to direct the AO accordingly. Hence, we direct the AO to verify the evidences regarding credit for TDS and accordingly allow the same. Charge interest u/s 234C on returned income as against interest charged on the assessed income - Held that:- We find that the provisions of Section 234C of the Act is very clear on this issue that interest u/s 234C of the Act is to be charged on returned income only. We direct the AO accordingly.
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