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2014 (7) TMI 989 - ITAT MUMBAIAdditional disallowance u/s 14A r.w. Rule 8D Held that:- The available funds with the assessee are far more than the borrowed funds & that the borrowings of the company in the immediately preceding year which has substantially come down which means that the investments have been made out of interest free funds i.e. assessees own funds - Following the decision in The Assistant Commissioner of Income Tax, Cir. 4(2), Versus M/s. Intime Spectrum Securities Ltd. [2012 (8) TMI 303 - ITAT, MUMBAI] - Therefore no disallowance can be made u/s. 14A - Decided in favour of assessee. Disallowance of foreign travelling expenses Held that:- The CIT(A) has allowed entire travelling expenditure for trips to Dubai and 50% of expenditure for trips to other places considering the submission that assessee is also engaged in the business of financial activities including leasing financial and advisory services and that the Directors had visited Dubai to study real estate market - as the issue in the year under question is same the same order is to be followed Decided in favour of assessee. Disallowance of STT as capital expenses Held that:- The assessee in this case is neither the purchaser nor the seller - He is merely a collecting agent of STT on behalf of the Government - the assessee has both collected the amount and paid the same to the Government - assessee being a broker has neither purchased shares on its own nor sold shares on its own - It was only an intermediary - section 40(a)(ib) of the Act does not get attracted in this case nor section 88E benefit can be extended to the assessee - Following the decision in M/s A.K. Equities Pvt. Ltd. Vs. ITO [2010 (2) TMI 1115 - ITAT MUMBAI] - Only when the purchaser or the seller claims a deduction of STT paid, then only 40(a)(ib) is attracted Decided in favour of Assessee. Disallowance of bad debts Held that:- The AO has disallowed the part claim of the assessee on the ground that the claim should be after adjusting all receivables by the assessee against the clients by sale of holdings by the assessee belonging to the clients - assessee has made the claim that the amount written off by the assessee pertaining to the outstanding receivables after considering any sale of client's holding and this fact has been examined by the CIT(A) - the amount of ₹ 2.92 crores was the balance after recoveries from the margin money/shares of the debtors and nothing has been brought on record by the AO to rebut the said claim of the assessee Following CIT Vs. Shreyas S. Morakhia [2010 (7) TMI 455 - ITAT MUMBAI] Decided in favour of Assessee.
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