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2024 (4) TMI 199 - GUJARAT HIGH COURTDisallowance u/s 14A - as per tribunal addition cannot exceed the exempt income earned by the assessee - HELD THAT:- Revenue submitted that Questions a, b and c of the proposed questions would be taken care of by the questions which are already admitted by this Court in [2022 (6) TMI 1468 - GUJARAT HIGH COURT] in case of the respondent. Accordingly, the following question is admitted - “Whether in the facts and in the circumstances of the case and in law the Appellate Tribunal has erred in holding that disallowance under section 14A of the Act cannot exceed the exempt income earned by the assessees?” Disallowance of losses booked in penny stocks - there was a price fluctuation in the stock exchange - whether CIT(A) and the Tribunal have committed an error by setting aside the addition made by the AO as the assessee failed to prove the genuineness of such transaction before the AO? - HELD THAT:- As considered the concurrent findings of fact arrived at by the CIT(A) and Tribunal and are in complete agreement with such findings to the effect that the assesse has proved the genuineness of the transactions and established on online trading platforms that it had no control whatsoever on share prices and thus, incurred losses in shares of Alang Industries Gas Ltd. It was also found by both the authorities that the assessee sold only the part of the shares and remaining shares have been held by the assessee in the subsequent assessment year also. With regard to shares of Kappac Pharma Ltd., it was rightly held by the Tribunal that since the market rate was lower, the assessee had incurred business loss though the shares are not sold. No substantial question of law.
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