TMI Blog2018 (3) TMI 1409X X X X Extracts X X X X X X X X Extracts X X X X ..... hat when the assessee himself has treated the income arising from sale of securities held for more than 12 months as capital gains, there is no reason to dispute it by Assessing Officer. Disallowance u/s 14A - Held that:- AO has not recorded satisfaction that how the claim of the assessee is incorrect. He also did not comment upon the argument of the assessee that on the dividend received from Dabur Limited no expenditure is incurred. The provisions of section 14 A (2) mandatorily provides that AO should record satisfaction about the correctness of the claim of the assessee. There is no such satisfaction recorded by the Assessing Officer. Addition made by the Assessing Officer and confirmed by the Ld. CIT (A) cannot be sustained. Accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assesse himself had disallowed ₹ 767286. 4. That the CIT (Appeals)/ AO has erred on facts and in law in disallowing the business expenses of ₹ 15,68,000 on adhoc basis without giving reasons as to how the figure of ₹ 15,68,000 is worked out. 5. That the above grounds of appeal are independent and without prejudice to one another. Your appellant craves leave to add, alter, amend or withdraw any of the grounds of appeal at the time of hearing. 2. The ground No.1 and No. 5 are general in nature and therefore, they are dismissed. 3. The ground No. 2 of the appeal is against the order of the Assessing Officer wherein the long term capital gain earned from listed securities of ₹ 25,13,359/- is trea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e than 12 months, if assessee shows it as LTCG, same should be accepted. 7. In view of above facts we are of the opinion that when the assessee himself has treated the income arising from sale of securities held for more than 12 months as capital gains, there is no reason to dispute it by Assessing Officer. 8. In view of this ground No. 2 of the appeal of the assessee is allowed holding that long term gain from listed securities of ₹ 25,13,359/- is chargeable to tax under the head capital gain and not business income. Ground No. 2of the appeal is allowed. 9. Ground No. 3 is with respect to disallowance u/s 14 A. During the year assessee has earned an exempt income of ₹ 26,43,57,693/-. The Ld. Assessing Officer questione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filling the return of income assessee on its own disallowed ₹ 767286/- u/s 14 A. The assessee has given a detailed computation for the same. 13. The Ld. Assessing Officer did not say that how the claim of the assessee is not correct. Assessing Officer has not recorded satisfaction that how the claim of the assessee is incorrect. He also did not comment upon the argument of the assessee that on the dividend received from Dabur Limited no expenditure is incurred. The provisions of section 14 A (2) mandatorily provides that Ld. Assessing Officer should record satisfaction about the correctness of the claim of the assessee. In the present case there is no such satisfaction recorded by the Assessing Officer. In view of this the additio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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