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Oasis Securities Ltd. Versus The Asst. Commissioner of Income Tax-Circle 4 (2) And The Deputy Commissioner of Income Tax 4 (2) (1) , Mumbai

2017 (12) TMI 613 - ITAT MUMBAI

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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lation loss at ₹ 1,04,65,899/-. The appeal of assessee is allowed and that of the Revenue is dismissed. - ITA No. 3323/Mum/2016 And ITA No. 4547/Mum/2016 - Dated:- 6-12-2017 - SRI MAHAVIR SINGH, JM AND SRI N.K. PRADHAN, AM For The Assessee : Prakash K Jotwani, AR For The Revenue : Ram Tiwari, DR ORDER PER MAHAVIR SINGH, JM: These Cross appeals are arising out of the order of Commissioner of Income Tax (Appeals)-9, Mumbai, [in short CIT(A)] in appeal No. CIT(A)-9/Cir.4/406/2013-14 dated 16- .....

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CIT(A) erred in directing the AO to delete the disallowance of ₹ 51,11,981/- made by the Assessing Officer u/s 14A read with rule 8D of the income Tax Act. 1961 relying on the decision in the ease of India Advantage Fund." 2. On the facts and in the circumstances of the case and in law, the 14. CIT(A) further erred in not appreciating the fact that the issue of disallowance u/s 14A read with rule 3D has not reaching finality, there being catena of cases where decision is given favour .....

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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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ock in investment as well as stock in trade both. Accordingly, the AO is directed to re-compute calculation of disallowance u/s.14A r.w.r.8D(2Xii) of I T Rules, 1962 in view of the above facts and modify the disallowance from ₹ 8,18,090/- to the fresh figure which can be arrived at only on the figure of stock of investment as reflected in the Balance Sheet Schedule F of the Audited Accounts. As regards disallowance of ₹ 65,027/-, no worthwhile defence have been put forward during the .....

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the facts and circumstances of the case. At the outset, the learned Counsel for the assessee stated that the assessee s exempt income i.e. dividend income is to the tune of ₹ 1,51,348/-. According to him, the issue is squarely covered by the decision of Hon ble Delhi High Court in the case of Joint Investment Pvt. Ltd. vs. CIT (2015) 372 ITR 694 (Delhi), wherein it is held that the window for disallowance was indicated in section 14A of the Act and was only to the extent of disallowing exp .....

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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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appellant was eligible for carry forward of ₹ 1,04,65,8991- & further holding that appellant has not made case on merits, while the AO himself has stated that the appellants case had merits. 7. At the outset, the learned Counsel for the assessee took us through the assessment order at Para 6 which reads as under: - 6. For the year under consideration, the assessee company has claimed the following losses: AY 2009-10 Speculation Loss 56,42,063/- Business Loss 27,14,160/- Depreciation L .....

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considering the claim of the assessee s of speculation loss of ₹ 56,42,063/- as per its return of income, ₹ 56,42,063/- is set off during the year and the balance of ₹ 48,23,836/- is allowed to carry forward for the subsequent years. 8. The learned Counsel for the assessee explained that the assessee mistakenly mentioned speculation loss claim in the return of income at ₹ 56,42,063/- but AO himself had noted the correct speculation loss after verifying from the records i .....

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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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