TMI Blog2017 (9) TMI 378X X X X Extracts X X X X X X X X Extracts X X X X ..... aswami Bank Ltd. (1965 (4) TMI 11 - SUPREME Court) wherein it was held that since the entire income of the assessee include interest on securities, the assessee was entitled to set off such losses out of its business income. We also note that AO cannot dispute that the loss arising from sale of investment will be capital gain as against business loss claimed by the assessee. The same stand was followed by the assessee in the earlier years and there is no addition made by the AO in the earlier and succeeding years. Thus addition deleted. Assessee appeal allowed. - I.T.A. No. 6059/DEL/2015 - - - Dated:- 6-9-2017 - SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER For The Assessee : Sh. Ved Jain, Adv. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acts and in law, in confirming the disallowance of ₹ 29,82,952/- made by the AO on account of loss on sale of mutual funds by holding the same to be a capital loss as against business loss. ( ii) That the said disallowance has been confirmed despite the fact that the loss is revenue in nature, incurred during the normal course of business of the assessee. 5. The appellant craves leave to add, amend or alter any of the grounds of appeal. 2. The brief facts of the case are that Assessee had filed the return declaring income of ₹ 27,84,690/- on 29.9.2012. The case of the assessee was processed u/s. 143(1) of the Income Tax Act, 1961 (hereinafter referred as the Act) and was taken up for scrutiny. Accordingly, noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, it was observed that the assessee was having investment in Mutual Fund amounting to ₹ 1,50,00,000/- at on 31.3.2011 which were sold during the year and on which loss of ₹ 29,82,952/- has been incurred and claimed by the assessee as revenue expenses. Assessee was asked to provide the details of expenses claimed in P L account in excess of ₹ 1 lac with evidence of TDS deducted thereon. In reply to the same, the assessee has submitted that details of other expenses but no details were filed for the loss claimed on sale of investment. Since the loss incurred by the assessee company on sale of mutual funds which were held as investment is of the nature of capital loss and has to be assessed as income from Capital gains / los ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R relied upon the orders of the authorities below. 7. We have heard both the parties and perused the records especially the impugned order. We find that in this appeal assessee has challenged the two additions, firstly disallowance of ₹ 37,500/- by invoking the provisions of section 14A and a sum of ₹ 29,82,952/- on account of loss on sale of mutual funds by holding the same to be a capital loss as against business loss claimed by the assessee. We further find that as regards to disallowance of ₹ 37,500/- under section 14A, is concerned, the Ld. CIT(A) while confirming the same placed reliance upon the judgment of this ITAT in the case of Cheminvest Ltd. Vs ITO [2009] 121 ITO 318 (Del) (S8), stating that even if there i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5) 57 ITR 306 (SC), wherein it was held that since the entire income of the assessee include interest on securities, the assessee was entitled to set off such losses out of its business income. We also note that AO cannot dispute that the loss arising from sale of investment will be capital gain as against business loss claimed by the assessee. The same stand was followed by the assessee in the earlier years and there is no addition made by the AO in the earlier and succeeding years. Thus, respectfully following the precedent, as aforesaid, the addition made by the AO and confirmed by the Ld. CIT(A) is hereby deleted and accordingly, we allow the ground raised by the assessee. 8. In the result, the Appeal filed by the Assessee stands all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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