TMI Blog2016 (3) TMI 1367X X X X Extracts X X X X X X X X Extracts X X X X ..... n it as provision. Ld. counsel further submitted that this expenditure has been allowed in earlier years. Ld. counsel further submitted that this expenditure should be allowed in terms of section 43B also. He further submitted that assessee did not get sufficient opportunity to explain the facts in this regard. We have considered the submissions of both the parties. We are of the opinion that the facts in regard to this issue needs to be re-marshaled. We, therefore, restore this issue to the file of AO for deciding the issue de novo in accordance with law, after affording reasonable opportunity of being heard to the assessee. - ITA No. 3115/Del/2013 - - - Dated:- 1-3-2016 - SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER AND SHRI SUDHANSHU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as deleted in respect of sale of investment. 5. Ld. CIT(A) observed that the said decision was given in respect of assessment year 2007-08 while Rule 8D had been made applicable from AY 2008-09. Moreover, the said decision was in respect of sale of investment and not in respect of dividend income. He restricted the disallowance to ₹ 23,31,454/-. 6. Aggrieved, the assessee is in appeal before us and has taken following grounds of appeal: On the facts and in the circumstances of the case, the ld. CIT (Appeal) has erred in 1) In upholding the disallowance of₹ 58,11,413/- under section 14A of the Income tax Act as against the disallowable amount of ₹ 23,31,454/- only. 2) Uphol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 44 read as under: Insurance business, - 44. Notwithstanding anything to the contrary contained in the provisions of this Act relating to the computation of income chargeable under the head interest on securities , Income from house property , Capital gains or Income from other sources , or in section 199 or in sections 28 to 43B, the profits and gains of any business of insurance, including any such business carried on by a mutual insurance company or by a co-operative society, shall be computed in accordance with the rules contained in the First Schedule. 23. The above provision makes it very clear that section 44 applies notwithstanding anything to the contrary contained within the provisions of the Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of ₹ 23,31,454/- stands deleted. 9. Brief facts apropos ground no. 2 are that in the P L A/c assessee had debited a sum of ₹ 14,54,000/- on account of provision for stock holding and other charges. The assessee explained that these charges were paid to the custodians of its shares, securities, bonds and debentures, which formed part of its investment portfolio. Income from its investment portfolio was offered for taxation and, thus, expenses were claimed. The AO rejected the assessee s claim for the following two reasons: It is clearly reflected as a provision in the Balance Sheet as part of annual report submitted by the assessee. The balance sheet is duly scrutinized audited by the assessee company. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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