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TMI Blog2015 (7) TMI 1308X X X X Extracts X X X X X X X X Extracts X X X X ..... grievance of the Revenue is that the Ld. CIT(A) erred in deleting the addition made by the AO on account of provision for mark to market loss of the derivate transactions amounting to Rs. 10,88,712/-. 2.1. This issue has been decided in favour of the assessee and against the Revenue in plethora of decisions. However, at para-3.3, we find that the Ld. CIT(A) has followed the decision of the Tribunal in the case of assesse's group company M/s. Edelweiss Capital Ltd. in ITA No. 5324/M/07 for A. Y. 2004-05. The findings of the Ld. CIT(A) read as under: "I have considered the facts of the case and the argument of the appellant. I find that an identical issue was there in A.Y. 2009-10 where I had allowed the appeal as under: The appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. We, therefore, delete the disallowance made by the revenue authorities." Following the above decisions of my predcessors and Hon'ble ITAT, the AO is directed to delete the addition of Rs. 10,88,712/-. This ground of appeal is thus, allowed." As no distinguishing decision has been brought before us, we do not find any reason to interfere with the findings of the Ld. CIT(A). Appeal filed by the Revenue is accordingly dismissed. ITA No. 7199/M/13 - Assessee's appeal 3. The only grievance of the assessee relates to the disallowance made u/s. 14A r.w. Rule 8D of the Act. 3.1. During the course of the scrutiny assessment proceedings, the AO noticed that the assessee has earned dividend of Rs. 2,26,29,866/- and claimed the same as exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... funds are more than the investment. Therefore, the decision of the Hon'ble High Court of Bombay in the case of Reliance Utilities & Power Ltd., and HDFC Bank (supra) squarely apply. To this extent, no disallowance can be made. 7.1. In A.Y. 2008-09, the Tribunal has accepted the suo moto disallowance @ 5% of dividend income. We find that in this year, the assessee has given a complete break-up of proportionate expenses allocated by it which is exhibited at page-71 of the Paper book. Except for this, all other facts are identical to the facts of assessment year 2008- 09. Since assessee has given a detailed break-up as mentioned hereinabove, we direct the AO to restrict the disallowance to Rs. 9,49,475/- as made by the assessee. 8. In the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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