TMI Blog2023 (1) TMI 1249X X X X Extracts X X X X X X X X Extracts X X X X ..... eed to be allowed as business loss. And therefore the AO is directed to allow the business loss. Disallowance u/s 14A r.w.r 8D - HELD THAT:- As per assessee disallowance if any, cannot exceed Rs.31,200/- which was earned by the assessee and claimed as exempt. For such a preposition has relied on the decision of Maxopp Investment Ltd. ( 2018 (3) TMI 805 - SUPREME COURT ]. Since the assessee earned exempt income of only Rs 31,200/-, thus find force in the contention of the assessee, so I restrict the disallowance to only Rs.31,200/- and thus the AO is directed to give relief accordingly. Thus, this ground of assessee is partly allowed. - I.T.A. No. 1528/Mum/2020 - - - Dated:- 31-1-2023 - SHRI ABY T. VARKEY, JM For the Assessee : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 84/- which assessee claimed to have incurred loss of Rs.41,64,684/-. 4. Brief facts as noted by the Ld. CIT(A) is as under: - 4.1. During the course of assessment proceedings, the AO, on perusal of the AIR statement, noticed that during the year under consideration appellant had dealt in penny stock transaction in the shares of company M/s Shree Shaleen Textiles Ltd. The AO further observed that the appellant had taken business loss on sale of shares of M/s Shree Shaleen Textiles Ltd of Rs. 41,64,684/-. Accordingly, the AO asked the appellant to file various details regarding transaction. After analysing the facts of the case and properly gathering data and evidence regarding the scrip of M/s Shree Shaleen Textiles Ltd., the AO issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... up of operators to accommodate beneficiaries seeking long term capital gain and losses. According to the AO, no prudent businessman and particularly trader or investor in stock would invest in such penny scrip which was defunct and inoperative. 5. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A) who was pleased to confirm the same, therefore, the assessee is before us. 6. I have heard both the parties and perused the records. I note that the assessee has been regular trader in share market in the earlier years as well as in the succeeding years. The assessee filed documents to prove that the assessee has been regularly trading in shares (other shares). The Ld. AR drew our attention to page no. 7 to 37 of PB which giv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chase and sale of shares reflecting the details of Trade No., Trade Time, etc., and the purchase and sale of the shares of Shree Shaleen Textiles Ltd. is reflected in the assessee s Demat Account pursuant to delivery from the broker. It is noted that the consideration for purchase and sale of this scrip have been through the banking channel/account payee cheque which fact is reflected in the bank statement of assessee. Moreover, it is noted that the AO had sought confirmation of the transaction in question from registered broker viz M/s. Indira Securities Pvt. Ltd. which carried out the purchase and sale of the shares of M/s. SSTL on the floor of the stock exchange; and pursuant to the same, the assessee has attached the copy of transaction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7/- is directed to deleted. 11. Ground no. 3 is against the action of the Ld. CIT(A) in confirming the disallowance of Rs.2,25,080/- made u/s 14A of the Act. 12. The AO at para no. 7 of his order has noted that the assessee has made investment in assets which are earning exempt income. The AO asked the assessee to furnish the details of the same in view of the provisions of Section 14A r.w. Rule 8D of the Income Tax Rules, 1962 (hereinafter the Rules ). And the assessee filed the computation u/s 14A of the Act. Accordingly, the AO disallowed an amount of Rs.2,25,080/-. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A) wherein the assessee has raised ground no. 5 wherein it stated that the AO has made disallowance of R ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
