9911796707
TMI Blog2016 (12) TMI 1002X X X X Extracts X X X X X X X X Extracts X X X X ..... tal income of Rs. 29.52 lakhs. The total income included short term capital gain of Rs. 48,96,441/- arising on sale of shares, against which brought forward short term capital loss of Rs. 30,47,389/- was adjusted. The AO took the view that the assessee is carrying on purchase and sale of shares in a systematic and organized way. Further the volume of transaction was also considered to be very high. It was also seen that the assessee is carrying on the activity year after year. Accordingly he took the view that there is continuity and regularity in purchase and sale of shares. Accordingly he held that the assessee is carrying on shares trading activity as a trader and not as investor. He accordingly assessed the short term capital gain of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The closing investment is only in scrips of 6 companies and same is evident from page 15. 5. The Revenue has accepted the capital gains on similar facts in all the assessment years except the year under consideration. Assessment for A.Y. 2009-10 and 2013-14 has been made under section 143(3) of the Act. The assessment order and the details for A.Y. 2009-10 are at pages 31, 35 and 40 of the paper book and assessment order for A.Y. 2013-14 is handed over across the bar, 6. Out of short-term capital gain of Rs. 48.96 lakhs, Rs. 1.6 lakhs is on account of holding of shares which are less than 1 month, Rs. 30.20 lakhs is on account of shares held for less than 3 months, and the balance Rs. 18 lakhs is from the scrips held for more than 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the contrary, supported the order passed by Ld CIT(A). 5. We have heard the parties and perused the record. We notice that the Ld CIT(A) has observed that the assessee has borrowed funds from a family member and her spouse. The Ld A.R pointed out that they are interest free funds, meaning thereby, the assessee did not incur any interest expenditure. In the written submissions, the assessee has also given reasons for receiving lower amount of dividend income. The Ld CIT(A) has observed that the assessee has dealt in 196074 number of shares. The assessee has pointed out that she has dealt in only 12 scrips, out of which four scrips were bought last year. Thus, it is seen that the assessee has purchased and sold higher number of shares in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome. The question of apportionment of expenses between taxable income and exempt income would arise only if any expenditure is claimed by the assessee. Hence we are unable to agree with the view taken by the Ld CIT(A) that the provisions of Rule 8D provide for "deemed disallowance". It is well established proposition now that the assessing officer can resort to compute disallowance under Rule 8D only if he is not satisfied with the computation made by the assessee having regard to the accounts of the assessee. Since the assessee has not claimed any expenditure, in our view, there is merit in the contentions of the assessee that no disallowance u/s 14A is called for. Accordingly we set aside the order passed by Ld CIT(A) on this issue and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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