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2022 (3) TMI 1197 - AT - Income TaxDisallowance u/s 14A r.w.r 8D - assessee contended that since there is no new investment in shares made by the assessee company during the year under assessment disallowance interest in respect of expenses as per Rule 8D(ii) is not sustainable - HELD THAT:- As perused the order passed by the CIT(A) who has thrashed the facts in detail and when there is no fresh investment by the assessee company in shares during the year under assessment Rule 8D(ii) is not attracted. So the assessee company has rightly made suo-moto disallowance @ 0.5% of the average investment. So we find no scope to interfere into the findings returned by Ld. CIT(A), hence ground No.1 raised by the Revenue is hereby dismissed. Adjustment of LTCL against the LTCG of the property sold during the year - AO has disallowed on the ground that when the income includes loss, the loss is arising out of sale of shares/mutual funds which are subjected to STT also are not part of the total income and as such assessee is not entitled for adjustment of LTCL against its LTCG - HELD THAT:- When the assessee company has merely sought direction from the Ld. CIT(A) for allowing of carry forward of speculation loss on the commodity exchange during the year and claimed carry forward in the subsequent years’ profit, the Ld. CIT(A) has directed the AO to verify the amount of speculation loss in accordance with the law, if any speculation loss is there the same may be set off against any speculation income in the future. Since the AO has been given the liberty to proceed as per law only to set off speculation loss that too in accordance with the law against any speculation income of the assessee in future, no ground is made out to interfere into the findings returned by the Ld. CIT(A), hence ground is also determined against the Revenue.
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