TMI Blog2015 (1) TMI 1205X X X X Extracts X X X X X X X X Extracts X X X X ..... the present case, Rule 8D is applicable with regard to such interest expenditure. The Assessing Officer has made disallowance as per Rule 8D and hence, we reverse the order of CIT(A) in both the years and restore that of the Assessing Officer. - Decided against assessee - ITA Nos.419 & 420/LKW/2012 - - - Dated:- 7-1-2015 - SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER For the Appellant : Shri Rajnish Yadav, D. R. For the Respondent : Shri Abhinav Mehrotra, Advocate O R D E R PER A. K. GARODIA, A.M. Both these appeals are filed by the Revenue, which are directed against two separate orders of learned CIT(A)-II, Kanpur both dated 19/04/2012 for the assessment year 2008-09 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the it was for assessee to show by production of materials that those shares were acquired from funds available in its hand at relevant point of time without taking benefit of any loan. 2. That the order of the Ld. Commissioner of Income Tax(A)- II Kanpur being erroneous in law and on facts deserves to be vacated and the order of the Assessing Officer be restored. 4. Learned D. R. of the Revenue supported the assessment order whereas learned A. R. of the assessee supported the order of learned CIT(A). He also submitted that this issue is covered in favour of the assessee by the Tribunal order in I.T.A. No.399 400/Lkw/2010 dated 31 May 2013. He submitted a copy of the Tribunal decision. 5. We have considered the rival submiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount of gain on short term investment in addition to dividend income of ₹ 90.18 lacs and therefore, it is seen that the assessee is not a dealer in shares but investor in shares. Similarly, as per the balance sheet of the assessee for the year ending on 31/03/2009 also, we find that the assessee is showing investment of ₹ 340.80 lacs as on 31/03/2009 in the balance sheet appearing on page No. 28 and as per Schedule-8 to the profit loss account, appearing on page No. 34 of the paper book, the assessee is showing income of ₹ 10.13 lacs under the head profit from trading in securities and in the previous year column, the assessee is showing income of ₹ 709.93 lacs under the same heading whereas in the Schedule-8, fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annot 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 paper book. 6.2 Moreover in clause 17 of Notes to Accounts for year ending on 31.03.2008 on page 16 of paper book and in clause 18 of Notes to Accounts for year ending on 31.03.2009 on page 37 of paper book, it is stated that the company is engaged in trading of various commodities and quantitative details as required by paragraph 3 of part II to the Schedule VI of the Companies Act, 1956 are stated in these paras which include Agri Commodities, Diamonds, Iron Ore Fines an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee on another Tribunal decision in the case of DCIT, Kolkata vs. M/s Trade Apartment Ltd. in I.T.A. No.1277/Kol/2011 dated 30/03/2012, copy of which is available on pages 52 to 55 of the paper book. In that case, it is noted that there is no net interest expenditure after setting off interest receipt and interest payment. On this basis, it was held that no payment of interest expenditure, which is already set off, can be disallowed u/s 14A of the Act. Regarding other expenses, it is noted by the Tribunal that the entire expenses incurred by the assessee have been disallowed and therefore, nothing remains for further disallowance u/s 14A. In the present case, the facts are not shown to be similar and therefore, this Tribunal decision is n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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