TMI Blog2010 (1) TMI 874X X X X Extracts X X X X X X X X Extracts X X X X ..... of law and hence cannot be deleted, appeal of the Revenue is allowed in part. - I.T.A. No. 4085/Mum./2008, - - - Dated:- 13-1-2010 - J. Sudhakar Reddy, V.D. Rao, JJ. N.K. Balodia for the Appellant R.R. Vora for the Respondent ORDER J. Sudhakar Reddy, Accountant Member:- 1. This is an appeal filed by the Revenue directed against the order of the CIT(Appeals)-IV, Mumbai dated 12-3-2008 for the assessment year 2004-05. 2. Facts in brief:- The assessee is a share broker and dealer in share and securities and derivative instruments. The AO in the assessment proceedings disallowed the loss in trading in derivative instrument and had also disallowed proportionate expenditure attributable to speculative business. He also dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5,319/- as the same is incurred for the speculative activities which do not for part of the assessee's business carried out during the year. 5. On the facts and in the circumstances of the case, the Ld. CIT(A) erred in allowing the penalty of Rs.260858/- levied by Stock exchange. The Ld. CIT(A) failed to appreciate that the penalty levied by Stock exchange is for the offence for violation of law. 6. On the facts and circumstances of the case, the impugned order of the Ld. CIT(A) is contrary to law and consequently merits to be set aside and that of the Assessing Officer be restored. 3. We have heard Mr. N.K. Balodia, the learned DR and Shri R.R. Vora, learned counsel for the assessee. 4. On a careful consideration of the facts and c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are allowed. 6. Ground No. 4 is on disallowance of proportionate expenditure from regular business income and adding the same to speculation loss for the purpose of quantification of speculation loss. 6.1 Both the parties submitted that the first appellate authority has called for a remand report and the Dy.CIT-4(1) in his remand report dated 18-12-2008, submitted to the CIT(Appeals)-IV, at par 2.3 has come to a conclusion that the disallowance comes to Rs.1,03,17,491/- as against the assessee's claim of Rs.97,12,387/-. As this working of allocation of expenditure to the derivative transaction is approved by the AO himself in the remand report, we set aside this ground to the file of the AO with a direction to adopt this figure of Rs.1, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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