TMI Blog2022 (3) TMI 1197X X X X Extracts X X X X X X X X Extracts X X X X ..... . CIT(A), hence ground No.1 raised by the Revenue is hereby dismissed. Adjustment of LTCL against the LTCG of the property sold during the year - AO has disallowed on the ground that when the income includes loss, the loss is arising out of sale of shares/mutual funds which are subjected to STT also are not part of the total income and as such assessee is not entitled for adjustment of LTCL against its LTCG - HELD THAT:- When the assessee company has merely sought direction from the Ld. CIT(A) for allowing of carry forward of speculation loss on the commodity exchange during the year and claimed carry forward in the subsequent years profit, the Ld. CIT(A) has directed the AO to verify the amount of speculation loss in accordance with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2018, have upheld the principle of apportionment in cases where the assessee has mixed funds and interest has been paid? 2. Whether on the facts and in the circumstances of the case and in law, the Ld. C1T(A) was justified in directing the AO to allow the claim of set-off of long term capital loss on sale of shares against the long term capital gains arising on sale of land without appreciating that the long term capital gains on sale of shares being exempt u/s. 10(38), the loss was not liable to be set off against the taxable long term capital gains on sale of other assets or to be carried forward for set off against the taxable long term capital gains in the following assessment years? 3. The appellant prays that the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... way of filing the present appeal. 4. We have heard the Ld. Authorised Representatives of the parties to the appeal, perused the orders passed by the Ld. Lower Revenue Authorities and documents available on record in the light of the facts and circumstances of the case and law applicable thereto. Ground No.1 5. The AO made disallowance of ₹ 2,41,557/- out of which the assessee has already made suo-moto disallowance of ₹ 10,500/- by invoking the provisions contained under section 14A read with Rule 8D by making working as under: I Expenses directly attributable to exempt income (Demat Charges ₹ 2.500) ₹ 2,500 II. Form ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hon'ble Bench had decided the issue in favour of the appellant. The relevant extract of the above order is reproduced here as below:- 7. Whereas the Ld. AR, on the other hand, laid stress on the non recording of the satisfaction by the AO which is mandatory requirement for invoking the provision of section 14A read with rule 8D. The Id. AR further submitted that the interest income during the year as shown in schedule J was ₹ 57,83,581/- whereas the interest on finance charges were to the tune of Rs. 35,76,574/- thus resulting into net income at Rs. 22,07,007/- and further contended that when there is a net positive interest income no disallowance of interest expenses is required to be made. To support his content ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble ITAT Mumbai for assessment year A.Y 2011-12 above, the A.O. is directed to delete the disallowance of ₹ 2,31,057/- u/s 14A r.w. rule 8D. This ground of appeal is allowed. 7. Undisputedly, the assessee company has claimed exempt dividend income to the tune of ₹ 1,18,642/- under section 10(34) of the Act by making suo-moto disallowance of ₹ 10,500/- under section 14A of the Act @ 0.5% of the average investment. It is also not in dispute that no new investment in shares has been made by the assessee company during the year under assessment, which was reduced from ₹ 2,64,96,898/- to ₹ 16,09,369/-. 8. The Ld. A.R. for the assessee contended that since there is no new investment in shares made by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion loss ₹ 57831865/-. The assessee company shown speculation loss on commodity exchange during the year and claimed carried forward in the subsequent years profit, if any. The directions not issued by learned AO while computing the total income. The same may kindly be allowed for carried forward and oblige. 3.3.2 These grounds relate to carry forward of speculation loss of ₹ 5,78,31,865/-. The AO is directed to verify the amount of speculation loss in accordance with law in consequence of this order subject to the condition that they may be allowed to be set-off only against any speculation income in future. These grounds are allowed for statistical purposes. 12. When the assessee company has merely sought ..... X X X X Extracts X X X X X X X X Extracts X X X X
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