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2018 (2) TMI 1624 - AT - Income TaxDisallowance made u/s 14A - Held that:- The assessee had given workings under Rule 8D(2)(i) of the Rules at ₹ 1,57,976/- . We find that the CIT-A had given direction to the ld AO to make proportionate disallowance of direct expenses based on the turnover in trading and investment activity in shares and securities of the assessee. We do not find any infirmity in the said direction of the ld CITA. Hence there cannot be any grievance for the revenue in this regard. With regard to disallowance under Rule 8D(2)(iii), the ld CITA had rightly directed the AO to include only dividend bearing investments in tune with the decision of this tribunal supra. No infirmity in the said direction of the ld CITA. Accordingly, the Grounds 1 & 2 raised by the revenue are dismissed. Loss on account of commodity trading claimed - AO treated the loss as bogus loss and disallowed the same - Held that:- Admittedly, the assessee is not an interested party with either the Director or the broker company M/s Marigold Vanijya Pvt Ltd. In such a scenario, it is quite unusual that the said broker had carried out commodity trading transactions for and on behalf of the assessee without collecting any margin money. We find that the Director of broker company M/s Marigold Vanijya Pvt Ltd had filed a sworn affidavit before the ld AO which had been rejected without assigning any reasons in the assessment order. We find that the ld AO had not verified the transactions by summoning the broker u/s 131 of the Act or obtaining information from them. Hence the order of the ld AO suffers from various deficiencies. However, in the interest of justice, we deem it fit and appropriate, to remand this issue to the file of the ld AO, to decide this issue afresh in accordance with law.
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