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2017 (9) TMI 1395 - AT - Income TaxIncome from sale of shares - LTCG or STCG - period of holding - Held that:- We find that the issue involved in the present appeal is squarely covered by the aforesaid order of the Tribunal, dated 04.11.2015, passed in the case of the assessee for the aforementioned preceding years, viz. A.Ys. 2005-06, 2006-07, 2007- 08 and 2008-09 . We further find that the CIT(A) on the basis of a well reasoned order had rightly concluded that in the backdrop of the facts involved in the case of the assessee for the year under consideration, the profit on the sale of the shares had rightly been reflected by the assessee under the head STCG. We further find ourselves to be in agreement with the view taken by the coordinate bench of the Tribunal in the case of the assessee, and in the absence of any perversity or distinguishable fact having been brought to our notice in respect of the order of the CIT(A) for the year under consideration, therein find no reason to take a different view. Disallowance u/s 14A r.w. Rule 8D(ii) - computation of claim - AO's satisfaction before makin disallowance - Held that:- We find ourselves to be in agreement with the contention of the assessee that the very process of determination of the amount of expenditure incurred in relation to exempt income would be triggered, only if the A.O. returns a finding that he is not satisfied with the correctness of the claim of the assessee in respect of such expenditure. It is only if the A.O. is not satisfied with the correctness of the claim of the assessee that no expenditure had been incurred in relation to the exempt income, therein only after recording cogent reasons as regards the same, that the A.O. can therein embark upon the determination of the amount of expenditure in accordance with the method prescribed in Section 14A r.w. Rule 8D. See Godrej & Boyce Manufacturing Company Limited (2017 (5) TMI 403 - SUPREME COURT OF INDIA ) As in the present case it can safely be concluded that the A.O had failed to arrive at a satisfaction that having regard to the accounts of the assessee, as placed before him, it was not possible for him generate the requisite satisfaction with regard to the correctness of the claim of the assessee that no expenditure had been incurred by her in respect of the exempt income - Decided in favour of assessee.
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