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2015 (12) TMI 38 - AT - Income TaxTreatment to share trading loss - CIT(A) not treating the same as speculative loss - Held that:- The claim of the assesse for set off of loss from share dealing should be allowed from the profits from F & O in share transactions, the character of the income being the same and also hold that before application of the Explanation to section 73, aggregation of the business profit or loss is to be worked out irrespective of the fact whether it is from share delivery transaction or derivative transactions. - Decided against revenue. Interest on borrowed funds disallowed - interest on borrowed funds as not meant for business purposes when loans and advances were advanced without interest - CIT(A) deleted disallowance - Held that:- We find that the Learned CITA had rightly granted relief to the assessee to the extent of availability of own funds with the assessee. This issue is now settled by the decision of the Bombay High Court in the case of Reliance Utilities and Power Ltd reported in [2009 (1) TMI 4 - HIGH COURT BOMBAY] wherein it was held that “Where an assessee has his own funds as well as borrowed funds, a presumption can be made that the advances for non-business purposes have been made out of own funds and that the borrowed funds have not been used for this purpose.” - Decided against revenue. Disallowance u/s 14A - CIT(A) deleted disallowance - Held that:- CITA had rightly granted relief to the assessee by stating that while applying the second limb of Rule 8D , the interest that is already disallowed u/s 36(1)(iii) of the Act should be ignored for the purpose of separate disallowance u/s 14A of the Act in order to avoid double addition. - Decided against revenue.
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