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2022 (1) TMI 537 - AT - Income TaxCarry forward of Long Term Capital Loss arising from sale of equity shares - eligible to set off against Long Term Capital Gain (LTCG) of any subsequent assessment year which do not form part of total income as envisaged in the provisions of section 10(38) of the Income Tax Act - HELD THAT:- Following the decision in case of Raptakos Brett & Co. Ltd.[2015 (6) TMI 529 - ITAT MUMBAI] has attained finality as the appeal preferred by the department against the said decision has been dismissed by the Hon’ble Jurisdictional High Court, though, due to non-prosecution. Thus, we do not find any infirmity in the order of the Ld.CIT(A) in allowing the claim of carry forward of Long Term Capital Loss of ₹.17,86,21,665/- arising from sale of equity shares. With regard to case law relied by Ld. DR she relied on Apollo Tyres Ltd., v. DCIT [2021 (9) TMI 708 - KERALA HIGH COURT] the issue involved in that case was whether long term capital loss incurred on which STT paid could not be set off against long term capital gain arising out of sale of land, the issue is distinguishable. With regard to Nikhilsawhney [2020 (8) TMI 508 - ITAT DELHI] this case was pronounced on 17.08.2020 and subsequently Coordinate Bench has decided the issue in favour of the assessee. Aggrieved, when revenue preferred appeal before Hon'ble Jurisdictional High Court, the same was dismissed. Therefore, the issue under consideration reached finality. Accordingly, ground raised by the revenue is dismissed. Disallowance u/s 14A r.w.r. 8D - disallowance of the expenditure even where taxpayer in particular year has not earned any exempt income - HELD THAT:- Assessee has earned exempt income to the extent of ₹.49,23,544/- whereas the Assessing Officer calculated the disallowance u/s. 14A r.w. Rule 8D to the extent of ₹.67,13,465/- which is more than the exempt income earned by the assessee. The various courts have held that disallowance u/s. 14A of the Act cannot be more than the exempt income earned by the assessee. Therefore, we are in agreement with the finding of the Ld.CIT(A) and we do not find any reasons to interfere with the finding of the Ld.CIT(A). Accordingly, ground raised by the revenue is dismissed. Nature of expenditure - expenses on Software renewal license - revenue oR capital expenditure - HELD THAT:- We observe from the record that Ld.CIT(A) allowed the software licence charges expenses claimed by the assessee by relying on the Coordinate Bench decision in the case of DCIT v. Integrated Technology Solutions Pvt. Ltd. [2016 (4) TMI 30 - ITAT MUMBAI] - After considering the detailed findings of the Ld.CIT(A) we do not find any reason to interfere with the findings of the Ld.CIT(A). Therefore, the grounds raised by the revenue is dismissed. Disallowance on account of travelling expenses - assessee could not establish the business relevance of such expenses - HELD THAT:- We observed that the Coordinate Bench in own case after considering the facts in the case of the assessee has allowed 1/7th of the expenses incurred by the assessee as personal. Ld.CIT(A) has relied on the above finding and accordingly, allowed the appeal filed by the assessee before him. After considering the finding of the Ld.CIT(A) we do not find any reason to disturb or interfere with the above finding. Accordingly, ground raised by the revenue is dismissed.
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