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2018 (1) TMI 84 - AT - Income TaxDisallowance u/s 14A - Held that:- No infirmity in the order of ld. CIT(A) sustaining disallowance at ₹ 46,494/- by observing that assessee main object is to derive income from trading in shares and not for earning exempt income by way of investment in shares and securities. Disallowance of interest - assessee has incurred the said interest for non-business purpose - Held that:- No reason to interfere in the findings of ld. CIT(A) and deleting the impugned addition on account of disallowance of interest when appellant able to establish direct nexus of advances so granted out of interest free fund as evidenced from bank account and also said advance was related to F.Y. 08-09 (A.Y. 09-10) duly confirmed by M/s Isha Investment and no new advance were given during previous year, then disallowance of interest from the claim of interest for impugned previous year is neither justified nor sustainable. The A.O. is directed to delete the addition so made Addition on account of under valuation of closing stock - Held that:- When the matter came up before the ld.CIT(A), assessee succeeded in getting this addition deleted as ld.CIT(A) observed that assessee being in the business of trading shares and securities, calculates the closing stock on the basis of value of shares and securities as on the last date of last settlement, which in this case was 29.03.2010. 18. We find substance in the findings of ld.CIT(A), as the books of accounts of assessee are audited u/s.44AB, method of closing stock is consistent with the preceding year and there is no variation. Further we also find that the last date of settlement was 29.03.2010 and the assessee has calculated the valuation of closing stock at ₹ 6,20,62,436/- by adopting the valuation method of “cost or market value which were is less” for each script held as on 29.03.2010. The detailed working of closing stock also forms parts of the order of ld. CIT(A). We therefore, in the given facts and circumstances as well the factual material of the issue raised in this ground fail to differ with the view taken by ld.CIT(A) deleting the addition.
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