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2017 (6) TMI 520 - AT - Income TaxDisallowance u/s. 14A - calculation of income which does not form part of the total income - Held that:- CIT(A) has reduced the investment made in the partnership firm by considering that the assessee has received interest from the partnership firm and therefore, it is not a exempted income - the issue is restored back to the file of AO to examine that amount of ₹ 84,17,935/- received as interest income from the partnership firm - Restored back for statistical purposes Disallowance on carry forward of long term capital loss incurred by the appellant on winding up of its subsidiary - Disallowance of loan given for buying equity shares of said subsidiary - Held that:- assessee company was holding 49% of the shares of said company - thus CIT(A) restricted the claim of capital loss attributable to investment made in only equity share of the said foreign company keeping in view 49% of the share holding - no examination was made as to for what purpose, the impugned loan was advanced by the assessee company to Mr. Khalid Kazim Mohd. Abdulla, as there is no evidence on record to examine whether the amount was actually sent to foreign country after due approval from RBI - thus matter is restored back to AO for statistical purposes Disallowance of depreciation on UPS systems and data drive @60% - Held that:- Depreciation on UPS and data drive systems @ 60% is allowed if the said equipments were used for more than 180 days and @ 30% in case of their use for less than 180 days - these equipments are used along with the computers and thus, constitutes integral part of computer system - Decided in favor of assessee Disallowance of Commission paid to directors for their personal guarantee - Held that:- Personal guarantee of the directors was given on the insistence of Bank - if the guarantee is not given then the assessee company would have not be able to obtain the credit limit - assessee has failed to submit the original credit facility documentations of the bank - thus the matter is restored back AO to examine from the original bank documentations/agreements/sanction letter and whether any undertaking to this effect was taken from the company or not in terms of RBI guidelines - allowed for statistical purposes Sale of shares - whether to be treated as Capital gain or business income - Held that:- year the appellant has purchased and sold shares through portfolio management scheme - investments in portfolio scheme have been accepted from preceding years as investment - investment in shares is a continuous activity and same has been accepted by the Department in earlier years wherein short term and long term capital gain were declared by the appellant in the return of income - thus there is no change in facts and circumstances of the case with that of earlier years - investment was made in shares with the intention to hold the same for long term appreciation and for earning dividend - appellant has used his own funds and there are no borrowings made for investment - also because of off loading of some shares in short period his entire investments cannot be held as business transactions - Decided in favor of assessee
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