TMI Blog2015 (11) TMI 1202X X X X Extracts X X X X X X X X Extracts X X X X ..... t there is an apparent mistake in the Tribunal order which will result in the change in ultimate conclusion. We have seen that even after omitting these two figures of closing stock and adoption of a correct figure in place of wrong figure of income, the result and ultimate conclusion remain the same because these figures were not at all considered as a basis for coming to this conclusion that assessee is not dealer in shares. Hence, we have already rectified Para 6 of the Tribunal order by excluding the reference to these two figures of closing stock as on 31.03.2008 ₹ 60.20 lakh and as on 31.03.2009 ₹ 340.80 lakh and we have also rectified the mistake in income, which was noted at ₹ 709.93 lakh and the correct figure of ₹ 790.93 lakh is noted in the amended Para – 6. Hence these two mistakes have been rectified. Regarding third alleged mistake that balance sheet as on 31.03.2008 and 31.03.2009 showing closing stock of shares at ₹ 2431 lakh and ₹ 795.36 lakh is not considered by tribunal is factually incorrect because both these figures are duly considered in Para 6.1 of the Tribunal order as reproduced above. Hence, the ultimate conclusion rema ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... % u/s 112 of the Income Tax Act. The turnover of the transaction of in buying and purchases Shares in rupees:- While evaluating the balance sheet as on 03.03.2009 investment of ₹ 340.80 Laces has been referred. This is an investment in foreign subsidiary which is apparent from a perusal of schedule 5 on page 33. From this investment no evident has been earned during the year and this investment is a part of strategic business investment of the assessee i.e. to create holding subsidiary relationship. In the 3rd line of para6 a figure of ₹ 790.93 has been written as 709.93. The valuation of the closing stock of shares as per accounting slandered 2. The ITAT omitted to consider the following schedules. (i) Balance sheet as on 31,03.2008 Schedule 6 appearing on page 11 of the Paper Book under the head current asset were stock of shares of listed companies is shown at ₹ 2431 Laces. (ii) Balance sheet as on 31.03.2009 Similarly for the current asset of the assessee as on 31.03.2009 appearing on page 33 of the Paper Book a sum of ₹ 795.36 Laces appear as stock of shares. 2. In course of hearing before us, Ld. AR of the assessee drawn our at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for deciding the disallowance u/s 14A of the Act. Regarding both these aspects, we find force in the submissions of the Ld. AR of the assessee to the extent that these two investment amounts should not be taken into consideration for deciding the issue about disallowance u/s 14A. The third mistake pointed out is about the amount of ₹ 709.93 lacs which should be ₹ 790.93 lacs. We agree about this also. 4. Hence, we rectify and amend para-6 of the impugned Tribunal s order by excluding the reference to these two amount of investment of ₹ 60.20 lakh as on 31.03.2008 and ₹ 340.80 lakh as on 31.03.2009 and by considering the correct amount of ₹ 790.93 lacs in place of wrong amount of ₹ 709.93 lacs. We hold that Para 6 of the impugned tribunal order should read as under:- 6. Learned AR of the asessee has also placed reliance on the decision of Hon'ble Karnataka High Court rendered in the case of CCI Limited vs. JCIT, 250 CTR 291 wherein it is held that if the assessee is dealer in shares, it has to be accepted that dividend income is incidental to his business of dealing in the shares and therefore, the expenditure incurred in acquiring s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the method of valuing closing stock as required. These basis remain as before even after the amendment in Para 6. Moreover, other reasons are given in Paras 6.1 and 6.2 of the impugned Tribunal order because major discussion is in these two paras regarding this finding that the assessee company is not dealing in shares. Hence, these paras are also reproduced herein below:- 6.1 We have also seen that in Schedule No. 6 of the Balance Sheet as appearing on page 11 of the paper book, the assessee is showing Inventories on account of Shares of unlisted Indian companies ₹ 53 Lacs and Listed Securities ₹ 2431.49 Lacs as on 31.03.2008. Similarly, as on 31.03.2009 also on page 33 of the paper book, inventory of ₹ 53 Lacs of Shares of Unlisted Indian Companies and ₹ 795.36 Lacs of Listed Securities is shown as inventories. But merely giving a nomenclature of inventories to the stock of shares cannot change the nature of investment in shares into trading in shares particularly when the assessee company is valuing inventories of trading goods at cost or market price whichever is lower but the stock of shares is valued at cost as stated on page 13 and 35 of the pap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the assessee company has not reported the transaction in share in the form of opening stock, purchase, closing stock and sales and showing net income there from along with this fact that the assessee is not disclosing the method of valuing closing stock of share. Inference has been drawn by the Tribunal in Para 6 that all these suggest that the assessee is not dealing in shares. Apart from this, it is also noted by the Tribunal in Para 6.1 that merely giving nomenclature of inventories to the stock of shares cannot change the nature of investment in shares into trading in shares particularly when assessee company is valuing inventories of trading goods at cost or market price whichever is lower but the stock of shares is valued at cost as stated on page 13 and 35 of the paper book. Apart from this, it is also noted by the Tribunal in Para 6.2 of the Tribunal order that the assessee company is engaged in trading of various commodities and quantity details as required by paragraph 3 of part II to the Schedule VI of the companies Act, 1956 are stated with regard to Agri Commodities, Diamonds, Iron Ore Fines and metals but the quantitative details of shares are not included in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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