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2017 (12) TMI 613

Disallowance u/s 14A - Held that:- We find that the assessee himself has suo moto made disallowance of ₹ 58,095/- before CIT(A). On query from the Bench, the learned Sr. Departmental Representative (‘DR') could not counter the judgement of the Hon’ble Delhi High Court before us, or he could not brought any precedent of Hon’ble jurisdictional High Court in Revenue’s favour. Accordingly, we are of the view that the issue is squarely covered and hence, we restrict the disallowance at ₹ .....

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03-2016. The Assessment was framed by the Assistant Commissioner of Income Tax, Circle 4(2), Mumbai (in short ACIT) for the assessment year 2011-12 vide order dated 25-02-2014 under section 143(3) of the Income Tax Act, 1961(hereinafter the Act ). 2. The first common issue in these cross appeals is as regards to the order of CIT(A) restricting the disallowance at 51,11,981/-. For this Revenue has raised following grounds: - 1. On the facts and in the circumstances of the case and in law, the Ld. .....

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only & not for Rule 8D(ii). 3. Briefly stated facts are that the assessee is engaged in trading of shares as well as stock broker. The AO during the course of assessment proceedings noticed that the assessee has earned exempt income i.e. the dividend income of ₹ 1,51,348/- and claim the same as exempt under section 10(38) of the Act. Accordingly, the AO computed the disallowance under section 14A read with Rule 8D(2)(ii) of Income Tax Rules, 1962 (hereinafter the Rules ) at ₹ 50 .....

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appellate stage. In such situation, it can be clearly concluded that there will be some administrative and other general expenses which can be disallowed u/r.81)(2)(iii) of IT Rules, 1962. In view of this, the disallowance of ₹ 65,027/- is confirmed. In the result, the appellant's ground on disallowance u/s14A r.w.r.8D is Partly Allowed as indicated above. Aggrieved by the decision of CIT(A), both came in appeal before Tribunal. 4. We have heard the rival contentions and gone through .....

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ench, the learned Sr. Departmental Representative ( DR') could not counter the judgement of the Hon ble Delhi High Court before us, or he could not brought any precedent of Hon ble jurisdictional High Court in Revenue s favour. Accordingly, we are of the view that the issue is squarely covered and hence, we restrict the disallowance at ₹ 1,51,348/- to the extent of exempt income. We direct the AO accordingly. 6. The next issue in assessee s appeal in ITA No. 3323/Mum/2016 is as regards .....

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oss 19,33,204/- AY 2010-11 Business Loss 6,45,656 The same has been duly verified from records and observed as under:- AY 2009-10 (Assessed Income / Loss vide order U/s 143(3) dated 15/12/2011) Speculation loss 1,04,65,899/- Business income 23,02,740/- AY 2010-11 (Assessed Income / Loss vide order u/s 143(3) dated 28/11/2013) Business Income 4,11,919/- Therefore, for the year under consideration, the assessee is eligible to claim speculation loss of ₹ 1,04,65,899/- for AY 2009-10. However, .....

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made mathematical error while quantifying the amount of disallowance. This being the case, the issue becomes whether the disallowance made by the AO is mistake apparent from record or not. I have a thoughtful consideration to the same and I am of considered opinion that the appellant should have move rectification petition u/s.154 before the AO and if the same was rejected by the AC), then only, the appellant could have pursued the matter in appeal. Since, the appellant has not made out any cas .....

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ittedly, the assessee has claimed speculation loss in the return of income at ₹ 56,42,063/- but the AO himself has verified from the records that the speculation loss is at ₹ 1,04,65,899/-. According to us, the assessee is entitled for this loss and this has been verified by the AO from records. Accordingly, we direct the AO to allow the speculation loss at ₹ 1,04,65,899/-. The appeal of assessee is allowed and that of the Revenue is dismissed. 11. In the result, the appeal of .....

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