Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

ITO 16 (1) (1) , Mumbai Versus Manish S. Mehta

Addition u/s 14A r.w. Rule 8D - application of own fund to earn the exempt income - Held that:- CIT(A) nowhere applied the provision of section 14A r.w. Rule 8D of the Act properly. It has also not been observed that the assessee has applied his own fund to earn the exempt income or not. No satisfaction was recorded to decline the claim of the assessee if any. The facts are not disputed. The application of the funds have nowhere bifurcated. Since, there is no proper application of the provision .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Options - claimed as speculation loss in Return of Income - Held that:- We noticed that the AO has already allowed the claim of the assessee for the A.Y 2007-08 and 2010-11 and specifically held that the income from F & O activities pertain to the head of business and not speculation. In the A.Y. 2007-08. AO has held that the as per Section 43(5) of the Act, loss in deviating trading is a business loss and therefore as per section 71 the same has to be set off against the income under any other .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

dance with law. Therefore, the finding no irregularity and illegality in the order passed by the CIT(A) on this issue we confirmed the finding of the CIT(A) on this issue and decided this issue in favour of the assessee - I.T.A. Nos.1831/M/2014 &1832/M/2014 And I.T.A. Nos.1152/M/2014 - Dated:- 13-9-2017 - SHRI B.R. BASKARAN, AM AND SHRI AMARJIT SINGH, JM For The Assessee : Shri Bhavesh Mehta For The Department : Shri Suman Kumar (DR) ORDER PER AMARJIT SINGH, JM: The assessee as well as the reven .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

where-in it is mandatory to apply Rule 8?' 2. "Whether on the facts and circumstances and in law, the Ed C1T4) has erred in restricting the disallowance made w 144 read with Rule 8tJ of the I-tax Act, 1961 where-in it is mandatory to apply Rule 8D in respect of income not forming part of the income?" 3, "Whether on the facts and circumstances and in law, the LdCIT(A) has erred in restricting the disallowance made its 144 read with Rule 8D of the I-tax Act, 1961 without noting .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

.01.2014. The last date for filing appeal is 17.03.2014. 3. The brief facts of the case are that the assessee filed his return of income on 27.09.2010 declaring total income to the tune of ₹ 7,31,877/- and loss to the tune of ₹ 4,65,597/- under the head of long term capital gain. The assessee was an individual and has earned profit on sale of share and showed a sum of ₹ 2,91,51,467/- as income from short term capital gain. The assessment u/s 143(3) was completed on 24.08.2011 d .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nnection with the assessing the expenditure incurred to the earn the exempt income by the CIT(A) to the tune of ₹ 8,76,302/ lacs u/s 14A r.w. Rule 8D. The Assessing Officer assessed the expenditure to earn the exempt income to the tune of ₹ 33.30,847/-. The Ld. representative of the revenue has argued that the AO has rightly assessed the expenditure to earn the exempt income to the tune of ₹ 33.30,847 which has been wrongly assessed by the CIT(A) to the tune of ₹ 8,76,302 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he I.T. Rules, 1962. It has been contended by the appellant that the investment in shares were made out of the appellant s own funds along with the interest free borrowings from friedns and relatives and hence, the calculation made by the Ld. AO was incorrect. In this regard, the Ld. AR has contended that out of the sum of ₹ 66.44,837/- the sum of ₹ 59,27,149/- has been disallowed as per para 5.2 of the impugned order. This addition on protective basis has not even been agitated in a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

order) 5,26,537 Disallowance u/s 14A r.w. Rule 8D 8,76,302 5. On appraisal of the above mentioned order, we noticed that the CIT(A) nowhere applied the provision of section 14A r.w. Rule 8D of the Act properly. It has also not been observed that the assessee has applied his own fund to earn the exempt income or not. No satisfaction was recorded to decline the claim of the assessee if any. The facts are not disputed. The application of the funds have nowhere bifurcated. Since, there is no proper .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

14:- 6. The assessee has raised the following grounds:- 1. Whether on the facts and circumstances and in law, the Ld. CIT(A) was justified in allowing the alleged loss occurred in trading of futures and Options which was claimed as speculation loss in Return of Income? 2. Whether on the facts and circumstances and in law, the Ld. CIT(A) has erred in not taking cognizance of Hon. Supreme Court of India decision in case of Goetze (India) Ltd. Vs. CIT 284 ITR 323 (2006); Wherein it is ascertained t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y, The Appellant prays that the order or the CIT(A) on the above grounds be set aside and that of the Assessing Officer be restored. A copy of the CIT(A)'s order was received by this office on 17.01.2014. The last date for filing appeal is 17.03.2014. 7. The facts of the present case are that quite similar to the facts of the case as narrated in the above mentioned appeal bearing no. 1831/M/2014 but the figures are different, therefore, there is no need to repeat the same. 8. All the issues .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. CIT 284 ITR 323 (2006). However, on the other hand, the Ld. representative of the assessee has refuted the said contentions. Before going further it is necessary to advert the finding of the CIT(A) on record.:- 1 also find that the Ld. AC in the appellants own case while passing now u/s. 143(3) of the Act for A. Ys 2007-08 and 2010-11 has held that income from F & C) activities pertains to the head business and not speculation. So much so in the assessment order for the AY, 2007-08, Ld.. A .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he carry forward at F & 0 loss as business loss in A.Y. 2008-09 was contrary to the rule of law and inconsistent with die findings given in the earlier and later years. What is rectifiable u/s. 154 of the Act is not only a mistake of fact but also a mistake of aw, and a wrong cairn made by the appellant cannot be taken advantage of if it is patent from records that the loss being claimed was on account of F & C activity. 14. AC is accordingly directed to verify the records produced by th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

News: Notification Issued For GST Actionable Claim On Branded Food Products

News: GST Refund - Blockage of Working Capital of Exporters - earlier also there was a normal blockage of funds for a period of 5-6 months at least

News: Clarification about Transition Credit - ₹ 1.27 lakh crore of credit of Central Excise and Service Tax was lying as closing balance as on 30th June, 2017 - claim of credit of ₹ 65,000 crore is not unexpected

Article: 20 Things You must know about E Way Bills in GST Law

Article: MISTAKES IN DRAFTING

Forum: Duty Drawback- Urgent

Highlight: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg. - Circular

Highlight: The definition of "subsidiary company" or "subsidiary" u/s 2(87) of the Companies Act, 2013 shall come into force w.e.f. 20-9-2017

Highlight: Central Government notified the All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017 - Notification

Notification: All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017

Circular: Investment by Foreign Portfolio Investors in Corporate Debt Securities Review

Notification: Exemptions on supply of services under UTGST Act

Notification: Rates for supply of services under UTGST Act

Notification: Exemptions on supply of services under IGST Act

Notification: Rates for supply of services under IGST Act

Notification: List of Exempted supply of services under the CGST Act

Notification: Rates for supply of services under CGST Act

Highlight: Acceptance of deposits by companies from its members - conditions relaxed in case of Specified IFSC Public company and a private company - Rule 3 amended

Notification: Rate of exchange of conversion of the foreign currency with effect from 8th September, 2017

News: Tax Payers Advised To Confirm Identities Of Income Tax Search Authorities

Notification: Amendment in Appendix 3 (SCOMET items) to Schedule- 2 of ITC (HS) Classification of Export and Import Items 2012

Forum: GST Invoice

Notification: The Customs and Central Excise Duties Drawback Rules, 2017

Circular: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg.

News: GST implementation smoother than expected: Jaitley

Forum: GST - TRAN1 - filed - Data uploaded with Remarks Processed with Error - Not coming in Electronic credit ledger - need suggession guidance

Forum: 3B mistake

Forum: Input tax credit

Forum: Excise duty credit on finished stock at additional place of business.

Forum: Due date of Filing TRAN-1

Highlight: Diversion of income at source - Joint venture agreement - 97% of the receipt transfer to M/s TRG Industries (P) Ltd. - scope of the agreement - it is diversion by overriding title - not taxable in the hands of assessee - HC

Highlight: Expenditure on eligible projects or schemes u/s 35AC - After 01.04.2017 the legislature desired to withdraw such deduction. - The Union legislature was competent to introduce such amendment - HC

Highlight: Transfer of trading assets at cost price, the profit component also stood transferred to the outgoing Directors, which otherwise belonged to the Company - the fact that AO has made the addition in the hands of the Directors would not make any difference - additions confirmed - HC

Highlight: The interest u/s 234B of the Act cannot go beyond the stage of S.245D(I) before the Settlement Commission - HC

Highlight: Galvanized iron pipe is a different commercial commodity than a iron pipe, therefore the activity of galvanization in our considered opinion amounts to manufacture - Deduction u/s 80-IB allowed - HC

Highlight: Penalty u/s 271C - non deduction of TDS on interest paid to sister concerns in terms of Section 194A - Levy of penalty confirmed - HC

Highlight: Disallowance of interest - reference to section 179 - The legislature has also recognised, that the doctrine of lifting of veil in the matter of tax dues is to be applied to prevent fraud etc. and not where the company has suffered despite its normal bona fide function. - HC

News: RBI Reference Rate for US $

Notification: Amendment in Notification No. S.O. 3118(E), dated the 3rd October, 2016

Highlight: Discount on ESOP to be allowed as business expenditure u/s 37(1), during the years of vesting on the basis of percentage of vesting during such period, subject to upward or downward adjustment at the time of exercise of option.

Notification: Central Government appoints the 20th September, 2017 as the date on which proviso to clause (87) of section 2 of the Companies Act 2013, shall come into force

Notification: Companies (Restriction on number of layers) Rules, 2017

Highlight: Penalty u/s 271(1)(c) - additional income disclosure - surrender of income post survey u/s 133A - he disclosure made by the assessee is voluntary in nature, in the revised return - no penalty

Highlight: Reopening of assessment - notice u/s 148 issued on the directions of JCIT / CIT - a perusal of reasons for initiating reassessment proceedings clearly show that they are against the sprit of provisions u/s 147

Highlight: MAT - Adjustment to book profit - computation u/clause (f) of Explanation-1 to section 115JB(2) is to be made without resorting to the computation as contemplated u/s 14A r.w.Rule 8D of I.T. Rules.

Highlight: Addition on account of alleged suppression of service value received - the addition made simply believing the Form 26AS will be an arbitrary exercise of power which cannot be sustained

Notification: Exempts intra state supply of heavy water and nuclear fuels from DAE to NPCIL

Notification: Seeks to amend notification No. 12/2017-UTT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017

Notification: Seeks to amend notification No. 11/2017- UTT(R) to reduce CGST rate on specified supplies of Works Contract Services

Highlight: Liability to pay duty on import of software - Though no authorization was given by the appellant to DHL, it is an undisputed position that the software has, in fact, been ordered by the appellant and have been delivered to them by DHL - the appellant is to be considered as the importer



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version