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2018 (2) TMI 1144 - AT - Income TaxSale of software - assessee claimed sale as a capital receipt thereby resulting into short term capital loss - assessee’s case was that three parties had sponsored the above software. Former two of them denied any such sponsorship and third entity namely M/s. R. R. Agency filed its confirmation of sponsorship - Held that:- We notice that there is no elaborate discussion either in assessment or during lower appellate proceedings as to how three parties could have allegedly sponsored the same relevant software. No justification as to how the resultant capital loss would be disallowed as the same would prima facie indicate a double addition of the very amount i.e. acquisition cost as well as loss arising from sale of the relevant capital asset. We therefore deem it appropriate that ld. CIT(A) needs to adjudicate this entire three folded issue once again as per law after affording adequate opportunity of hearing to the assessee to place on record all details. These three substantive grounds are therefore treated as accepted for statistical purposes. Section 14A r.w. Rule 8D disallowance - Held that:- We notice that the assessee’s stand throughout has been that it had re-invested dividend receipt from already invested mutual funds for the purpose of deriving exempt income in question. It emerges that a co-ordinate bench of this tribunal in M/s. Academy for Computer Training (Guj) Pvt. Ltd. vs. DCIT [2016 (11) TMI 1527 - ITAT AHMEDABAD] as decided holds that the impugned disallowance is not to be made in case of mutual funds. Thus delete the impugned disallowance pertaining to assessee’s exempt income. - Decided in favour of assessee
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