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2018 (8) TMI 668

1, 2009 to March, 31, 2010 in Future & Options segment” - Held that:- The said transactions have been duly reflected in the financial account in the books of broker of M/s. SSPL. Due to off market transaction, the assesse did not enter into the transaction and the broker of SSPL did not inform the NSE and in support of this, filed ledger account of assesse and records of M/s. SSPL showing the 1) Order No. 2) Date & 3) Trading Time etc. - The CIT-A examined the books of account, ledger account of assesse and records of broker of M/s. SSPL and found satisfied that the transaction in respect of share i. e order date, trading and time etc were recorded. - No additions - Decided against the revenue. - I.T.A No. 1159/kol/2015 - 8-8-2018 - Shr .....

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appeal filed initially may be withdrawn. Accordingly, the grounds of appeal initially filed are dismissed as withdrawn. 5. Ground no.1 of revised grounds of appeal is relating to deletion of disallowance made u/s. 14A of the Act. 6. After hearing both the parties and perusing the record, we find that the AO found that the assesse has shown dividend income to an extent of ₹ 11,94,522/-. The assesse contended that the dividend earned on the stock, which was held as stock-in-trade and as such no disallowance of expenditure can be made. The CIT-A held that no such disallowance can be made by invoking Rule 8D(2) in respect of shares held as stock-in-trade and as such deleted the addition made on this issue by the AO. The Hon ble Supreme C .....

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wance in its return of income in the sum of ₹ 12,881/- towards demat charges. The ld.CITA had restricted the total disallowance of ₹ 9,47,339/- being 10% of dividend income over and above the figure of ₹ 12,881/- suo-moto disallowed by the assesse. We find that the ld. AO cannot directly resort to the computation mechanism provided in Rule 8D(2) of the Rules for the purpose of making disallowance u/s. 14A of the Act. It is incumbent on the part of the ld.AO to verify the accounts of the assesse and ascertain the amount of disallowance from the said accounts u/s. 14A of the Act. Accordingly, we deem it fit and appropriate in the interest of justice and fair play, to remand this issue to the file of ld.AO for de novo adjudic .....

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sesse company was not mentioned by SSPL inadvertently. Another by letter dt.20-03-2013, the assessee stated that the transaction in question was not entered into the books of NSE, as it was in the off market transaction and STT was duly charged and paid by the assesse. The AO found that the replies of assesse were contradictory and being not satisfied, added an amount of ₹ 69,53,809/- to the total income of asssessee. 10. In the first appellate proceedings, it was contended that the assesse is a member of Bombay Stock Exchange. In Future & Option ( F & O ) transaction in the derivatives segment, are carried out at National Stock Exchange (NSE). The said transactions have been duly reflected in the financial account in the book .....

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tion u/s. 54E of the Act against purchase of said flat. Further, the said investment in the flat was made out from sale proceeds of shares and office premises. The AO held that claim of assesse regarding the purchase of shares was bogus and no such shares was purchased by the assesse. Consequently, sale of shares were held to be as bogus and added the same as unexplained investment u/s. 69 of the Act. The CIT-A confirmed the addition made on account of purchase and sale of shares as bogus as viewed by the AO. The Tribunal held that the purchase of shares were entered into the books of assesse and also reflected in the balance sheet and declared the same in the return of income. Further, purchase and sale of shares were outside the floor of .....

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orpio Management Consultants Pvt. Ltd cannot be disputed, because the fact that the Assessee has received the said amounts is not in dispute. It is neither the case of the Revenue that the shares in question are still lying with the Assessee nor it is the case of the Revenue that the amounts received by the Assessee on sale of the shares is more than what is declared by the Assessee. Though there is some discrepancy in the statement of the Director of M/s. Richmand Securities Pvt. Ltd. regarding the sale transaction, the Tribunal relying on the statement of the employee of M/s. Richmand Securities Pvt. Ltd held that the sale transaction was genuine. 7. In these circumstances, the decision of the ITAT in holding that the purchase and sale of .....

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