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TMI Blog2018 (9) TMI 422X X X X Extracts X X X X X X X X Extracts X X X X ..... nafter referred to as the 'Act') dated 22.01.2014 for the Asst Year 2011-12. 2. The first issue to be decided in this appeal is as to whether the Ld. CIT(A) was justified in reducing the disallowance made under section 14A of the Act to Rs. 6,10,940/- in addition to suo-moto disallowance to Rs. 32,830/- made by assessee in the facts and circumstances of the case. The assessee has also raised an alternative ground with regard to disallowance made u/s 14A pleading that the provisions of 14A of the Act per se are not applicable in the instant case. Hence, we reframe the question to be adjudicated by us as under with regard to impugned issue:- "1. Whether in law and in the facts and circumstances of the case, the provisions of section 14A of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 027/-. It was pointed out that this figure has been arrived by considering only the value of current assets after netting off the current liabilities. The assessee submitted that the average value of assets should be computed at Rs. 15,36,30,176/-. The Ld. CIT(A) observed that both the assessee's figure as well as the figure adopted by the Ld.AO was wrong. From the perusal of the balance sheet of the assessee company, the Ld. CIT(A) observed that the total value of assets of the company was 13,84,98,503/- and the average value of assets thereon was Rs. 12,33,65,842/-. Accordingly, he recomputed the disallowance figure under Rule 8D(2)(ii) at Rs. 3,16,829/-. Accordingly, the Ld. CIT(A) confirmed the total disallowance as under: Under 8D(2)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 115JB was less then tax payable under normal provisions of the Act. This fact is very much evident from the assessment order itself. Hence the plea of the learned AR that the assessee had paid tax on Long Term Capital Gain under section 115JB does not come to the rescue of the assessee. It is a fact that long term capital gain has been claimed as exempt by the assessee and accepted by the Ld. CIT(A) under normal provisions of the Act, against which action of the Ld. CIT(A), the revenue had not preferred any appeal before us. (b) Only the dividend income had suffered dividend distribution tax u/s 115O and that too in the hands of dividend distributing company and not in the hands of the assessee herein. The assessee company having receive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecisions of this tribunal 144 ITD 141 (supra). Needless to mention that the Assessing Officer while re-computing the same should give deduction of Rs. 32,830/- being the amount already disallowed u/s 14A by the assessee. Accordingly, ground no. 1 and 4 raised by the assessee is partly allowed for statistical purposes and ground no. 3 raised by the assessee is dismissed. 9. The next ground to be decided in this appeal is as to whether the Ld. CIT(A) was justified in upholding the disallowance of Rs. 18,93,788/- on account of Portfolio Management Services (PMS) fees paid as not eligible for deduction while computing the capital gains of the assessee, in the facts and circumstances of the case. 10. The brief facts of the issue is that the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see. Aggrieved the assessee is in appeal before us. 12. We have heard rival submissions. At the outset, we find that the Ld. CIT(A) had accepted that the gains on sale of shares through PMS providers to be taxed under the head capital gains. Against these findings of the Ld. CIT(A), the revenue has not preferred the appeal before us as per the material available on record. The assessee placed reliance on the decision of Co-ordinate Bench of Pune Tribunal in the case of KRA Holding & Trading Pvt. Ltd. vs DCIT in ITA Nos. 499, 500, 1320 to 1322 of 2008 and 434 of 2009 and 806 of 2009 dated 31.05.2011 reported in 2011 (5) TMI 498 ITAT Pune. There were primarily two issues before the Pune Tribunal in the aforesaid cases:- 1. Whether the tran ..... X X X X Extracts X X X X X X X X Extracts X X X X
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