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2022 (3) TMI 391 - HC - Income TaxValuation of mark-to-market loss as on 31st March, 2008 - HELD THAT:- A Division Bench of this Court in Commissioner of Income Tax – 16, Mumbai vs. D. Chetan & Co. [2016 (10) TMI 629 - BOMBAY HIGH COURT] has held that so long as it is not a case of speculative transaction and the loss incurred was of forward contract in the regular course of business, the loss incurred as forward contract should be allowed as business loss. Addition u/s 14A r.w.r. 8D - investment of shares and securities held as stock in trade - HELD THAT:- Tribunal has followed a judgment of this Court in Commissioner of Income Tax - 9 vs. India Advantage Securities Ltd. [2015 (6) TMI 140 - BOMBAY HIGH COURT] to hold that the provisions of Section 14A read with Rule 8D will not be applicable to investment of shares and securities held as stock in trade. Nothing is placed to indicate, as to why this judgment of the Bombay High Court was not applicable to the facts in hand. No interest is disallowable under Rule 8D2(ii) as assessee has more interest free funds than the investments - ITAT has accepted that the assessee has demonstrated that the interest income earned during the relevant previous years far exceeds the interest expenditure. The ITAT has also relied upon a judgment of this Court in Commissioner of Income Tax – 2, MumbaI vs. HDFC Bank Ltd. [2014 (8) TMI 119 - BOMBAY HIGH COURT] where the Court held that where assessee’s own funds and other interest bearing funds were more than investment in tax free securities, order passed by Assessing Officer disallowing a part of interest demand under Section 14A has to be set aside. There is nothing to indicate why this judgment is not applicable to the facts and circumstances of the case. Tribunal has not committed any perversity or applied incorrect principles to the given facts and when the facts and circumstances are properly analysed and correct test is applied to decide the issue at hand, then, we do not think that questions as pressed raise any substantial question of law
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