9911796707
TMI Blog2015 (1) TMI 1444X X X X Extracts X X X X X X X X Extracts X X X X ..... .Y. 2009-10. As common issues are involved in both these appeals, they were heard together and dispose of by this common order for the sake of convenience and brevity. ITA No. 4904/M/2012 - A.Y. 2008-09 2. The assessee is trading in securities and also in the business of advisory service, finance leasing and investment in securities. The return for the year was selected for scrutiny assessment. During the course of the scrutiny assessment proceedings, the Assessing Officer noticed that the assessee has earned dividend income of Rs. 16,92,522/- and long term capital gain of Rs. 85,74,072/-, both were claimed as exempt u/s. 10(34) and 10(38) of the Act respectively. The AO observed that the assessee has disallowed demat charges of Rs. 49,2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Ld. CIT(A) and direct the AO to delete the addition of Rs. 2,60,839/-. Ground No. 1 is accordingly allowed. 8. Ground No. 2(a) and 2(b) are consequential to our finding to ground No.1, therefore, ground No. 2(a) and 2(b) are treated as allowed in view of our findings given for ground No. 1. 9. Ground No. 3 relates to the addition of Rs. 2,03,107/- being securities transaction tax to the book profit computed u/s. 115JB. 10. A perusal of the assessment order shows that the addition has been made as per the explanation 1(f) of Sec. 115 JB of the Act. The said provision shows that it refers the amount of expenditure relatable to any income to which Sec. 10 other than the provisions contained in clause-38 thereof or section 11 or section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... II of Schedule-VI to the Companies Act 1956. Since the assessee's profit and loss account is not prepared in accordance with the relevant provisions of the Companies Act, the notional profit shown by the assessee has to be reduced while computing the book profit u/s. 115JB of the Act. Similar view has been taken by the Tribunal in the case of M/s. Bombay Diamond Co. Ltd in ITA No. 7488/M/07 wherein the Tribunal has held as under: "The various other decisions relied on by the Ld. CIT(A) in his order are also not applicable. In none of the case it has been held that even where the accounts are not prepared in the manner provided as per Part II and Part III of Schedule VI to the Companies Act, 1956 the Assessing Officer has no power to go be ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
