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TMI Blog2016 (10) TMI 1278X X X X Extracts X X X X X X X X Extracts X X X X ..... st paid on loans taken for share application money Rs. 1,60,00,000/- given to M/s. Career Point Info System Ltd. 2. That the order of the ld. CIT(A), confirming the addition made by the AO is arbitrary, whimsical capricious, perverse and against the law and facts of the case. The order of the ld. CIT(A) in this regard deserves to be set aside and addition made by the AO deserves to be deleted. 3. The assessee prays for leave to add, to amend, to delete or modify the all or any grounds of appeal on or before the hearing of appeal. 2.1 The Ground Nos. 2 and 3 of the assessee are general in nature which does not require any adjudication. 3.1 As regards Ground No. 1 raised by the assessee, the ld. AR of the assessee at the outset of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntions. 4.5 Having considered the material placed on record, I find that appellant has reiterated the submissions filed before the AO and has not been able to place an evidence to controvert the findings given by the AO in the order. Appellant has failed to reubut or produce the evidence that intention was to earn profits from the investment made in these share during the year under consideration as no sale of such shares was made even in the subsequent period. The shares of the investee company were not listed on any Stock Exchange. Further, AO has found that share application money was returned back on28-08-2008. The judicial decisions cited by the appellant are found to be not applicable to the facts of this particular case. 4.6 .. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... money. The bank statement of the assessee revealed that the payment of Rs. 80,00,000/- was made by the assessee on 13.2.2008 and another payment of Rs. 80,00,000/- was made on the same date against the share application money of M/s. Career Point Infosystem Ltd. No shares were allotted against the investment in share application money. The amount of Rs. 1,60,00,000/- was returned back on 28.8.2008. The AO, therefore, worked out the interest @ 9% on the investment made against share application money from 1.4.2008 to 28.8.2008 at Rs. 6,00,000/- and disallowed the same under section 14A. It is the undisputed fact that the assessee has not claimed any disallowance in relation to the investment made in share application money under the provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tisfaction as regards to the claim of the assessee. He is bound to compute the disallowance in accordance with such method as may be prescribed. In this regard it is the rule 8D which has been notified with effect from 24.03.2008. The assessment year involved is the assessment year 2009-10. I do not find any whisper whatsoever by the AO or by the ld. D/R that the AO has computed the disallowance by applying Rule 8d. In view of this fact, I am of the view that it is a case where no disallowance can be made. I accordingly set aside the order of ld. CIT (A). 4. In the result, appeal filed by the assessee is allowed.'' Respectfully following the decision of ITAT Jaipur SMC Bench in assessee's own case for the assessment year 2009-10 (s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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