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2017 (1) TMI 734 - ITAT MUMBAIDisallowance of mark to market (MTM) loss - Held that:- We find that the issue stands decided in favour of the assessee by the Tribunal in the matters relied upon by the AR. It is found that in the of the Kotak Mahindra Investment Ltd. (2013 (7) TMI 355 - ITAT MUMBAI ), the Tribunal has held that M T M losses have be allowed. We do not find any infirmity in the order of the FAA. So, respectfully, following the orders of the Tribunal, we decide issue against the AO. Disallowance under section 14A - Held that:- We find the Judicial Forums have, on more than one occasions, held that no disallowance u/s. 14A could be made if the shares are held as stock in trade or the assessee had not claimed any expenditure against the exempt income. In the case before us, the AO/FAA has not proved that stocks were held by the assessee as investment or that it had claimed by any expenditure for earning the tax free income. Therefore, reversing the order of the FAA, we decide the first ground of appeal in favour of the assessee. Disallowance of depreciation - AO held that assessee was not the owner of the assets, that it had not produced any documentary evidence to prove the payment was made by it, that it was not eligible for claiming depreciation - Held that:- We find that the group concern of the assessee had purchased computers/computer related accessories in Hong Kong, that the foreign-entity had made the initial payment, that the goods were shipped to India, that assets are appearing in the audited books of accounts of the assessee, that the AO had not doubted the genuineness of the details of the block of assets. After considering the available material, including the debit note raised by the foreign entity, we are of the opinion, the AO/FAA was not justified in denying the depreciation to the assessee. - Decided in favour of the assessee
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