TMI Blog2014 (1) TMI 1486X X X X Extracts X X X X X X X X Extracts X X X X ..... :- The AO has made disallowance on ad hoc basis and there is no reason for the same - Only expenditure of Rs.6560/- incurred on account of income tax is to be disallowed apart from disallowance restricted at Rs.5000 - Partly allowed in favour of assessee. - ITA No. 1434/Kol/2011, ITA No.1433/Kol/2011 - - - Dated:- 27-1-2014 - Shri Mahavir Singh And Shri Abraham P. George,JJ. For the Appellant : Smt. Ranu Biswas, SR-DR For the Respondent : Shri S. L. Kochar, AR, Shri Anil Kochar, AR ORDER Per Mahavir Singh, Judicial Member:- Both these appeals by Revenue are arising out of separate orders of Commissioner of Income-tax (Appeals)-XXX, Kolkata in appeal Nos.442 440/CIT(A)-XXX/Cir-44/2009-10 dated 27-07-2011. Assessments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... requent intervals cannot be treated as a change in investments but have to be treated as dealing in shares and treatment of share dealings in earlier year(s) is not a factor. 4. That ld. CIT(A) has erred in law as well as on facts in not considering that in terms of Para 11 of CBDT Circular No. 4/2007 dated 15.06.2007 the purchase and sale of shares shown by the assessee are essentially in the nature of assessee's business activities and as such the claim of Sec. 10(38) allowed by the CIT(A) is unjustified and bad in law. 3. Briefly stated facts are that assessee disclosed Long Term Capital Gains (LTCG) of Rs.43,59,492/- and Short Term Capital Gains (STCG) of Rs.18,39,391 from share transactions. The Assessing Officer has gone through t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... venue is also accepting the investment, and shares are valued at 'cost price' and not at 'market price'. It was also explained that investments are made by assessee out of its own funds and considering the same the CIT(A) deleted the addition vide para-5 of his appellate order as under:- "5. The contentions of the appellant as summed up above have been considered in the context of the findings arrived at by the Assessing Officer in his order while treating the income from share transactions as appellant's business income. It is seen that the appellant has consistently been showing her shares as investments and the same has been accepted as such by the department in earlier years and the Assessing Officer has not brought in any fresh evide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve, the contention of the appellant is accepted and the income from share transactions of Rs.43,59,492/- is to be treated as offered by appellant in its Income-tax Return as Long Term Capital Gain and Rs.18,39,391/- as Short Term Capital Gains. This ground of the appellant is therefore allowed." 5. We have heard rival contentions and gone through facts of the case record. We find that AO has treated the entire investment accounts as trading account treating the transactions as business transactions but the assessee treated capital gains either short term or long term. The assessee has never invested any borrowed funds rather it has invested her own funds. The assessee has disclosed the purchase and sale and gains arising out of sale as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inting and stationery, general expenses, tea, salary, rent, employee welfare etc. and these expenses are incurred mostly in cash on self made vouchers. As the assessee could not substantiate such expenses he made disallowance at Rs.75,000/-. The CIT(A) allowed the claim of the assessee by observing in para 6.2 as under: "6.2. In appeal it has been submitted that the expenses by their very nature have to be in cash and full narration are recorded in books. It is totally improper on the part of A.O. to state that the appellant failed to show that expenses were incurred for the purposes of business. The matter has been considered. As mentioned by me above, major portion of the expenses is towards salary and therefore even if the vouchers are ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
