TMI Blog2018 (11) TMI 1425X X X X Extracts X X X X X X X X Extracts X X X X ..... ). As a matter of fact, the revenue in the ground specifically raised in its appeal has clearly admitted the fact that speculation income of ₹ 66,22,069/- was declared by the assessee company. No justifiable reason to interfere with the impugned order of the CIT(A) giving relief to the assessee on this issue and upholding the same, we dismiss ground no. 1 of revenue’s appeal. Disallowance of 50% of expenses claimed under the various heads - addition restricted by the CIT(A) to 10% after taking into consideration the fact that the assessee company had maintained regular books of account, which were duly audited u/s. 44AB and the expenses claimed were duly supported with bills and vouchers - Held that:- The relief given by the CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Explanation to section 73. In reply, no explanation whatsoever was offered by the assessee. The assesse company also did not produce any documentary evidence in the form of bills and vouchers to support and substantiate the expenses of ₹ 5,57,900/- claimed by it inspite of sufficient opportunity given by the AO. Due to non-compliance on the part of the assesse, the AO was no left with no other alternative to complete the assessment u/s. 144 of the Act to the best of his judgment. In the assessment so completed vide order dt. 22-12-2011, the claim of the assessee for set off of loss from share trading amounting to ₹ 68,95,588/- was disallowed by the AO by invoking Explanation to section 73. He also disallowed expenses clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 73 is applying in the case of the appellant and the loss from share trading is treated as speculative loss, the same would be allowed to be set-off with the speculative gain of ₹ 66,22,069/- as per provisions contained in section 73(1) of the Income Tax Act, 1961. Therefore, the Assessing Officer is directed to allow set off of ₹ 68,95,588.22 on account of speculation loss against speculative gain of ₹ 66,22,069/- and allow appropriate relief to the appellant company accordingly. 4. The disallowance of 50% made by the AO out of expenses claimed by the assessee under various heads was also restricted by the ld. CIT(A) to 10% for the following reasons given at para 5.2.6, page-20 of the ld. CIT(A). 5.2.6 Regardi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loss against other income, it is observed that the ld. CIT(A) has allowed the same after having found that the case of the assesse was not covered under Explanation to section 73. He also found that income shown by the assessee to the extent of ₹ 66,22,069/- was in the nature of speculation income only and accordingly held that the assessee company even otherwise was eligible to set off its share trading loss against the said income. At the time of hearing before us, entitled the ld. DR has not been able to bring on record anything to rebut or controvert the findings recorded by the ld. CIT(A). As a matter of fact, the revenue in the ground specifically raised in its appeal has clearly admitted the fact that speculation income of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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