Appellant's appeal partially allowed, remanded for reassessment. Disallowance under section 14A remanded, Portfolio Management fees upheld.

The tribunal allowed the appellant's appeal for statistical purposes, remanding certain issues back to the Assessing Officer for reconsideration based on the appellant's arguments. The disallowance under section 14A was remanded due to the AO not following guidelines for objective satisfaction. The disallowance of Portfolio Management fees was upheld based on precedent. Concerns regarding the addition of the write back from provision for Non-Performing Assets were found valid, leading to a remand for a fresh decision by the AO considering the appellant's contentions.

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Issues:
1. Disallowance under section 14A of the Income Tax Act.
2. Disallowance of Portfolio Management fees while computing short term capital gains.
3. Addition of the write back from provision for Non-Performing Assets to the 'Book Profits' as computed under section 115JB of the Income Tax Act.
4. Non-reduction of write back from the provision for Non-Performing Assets amounting to a specific sum.

Issue 1: Disallowance under section 14A of the Income Tax Act:
The appellant contested the disallowance under section 14A made by the Assessing Officer using Rule 8D of the Income Tax Rules for the assessment year 2008-09. The Commissioner of Income Tax (Appeals) upheld the disallowance, citing the necessity to apply Rule 8D for the said assessment year. However, the appellant argued that the AO did not consider their suo-moto working of the disallowance and directly applied Rule 8D without proper justification. The tribunal noted that the AO did not follow the guidelines for objective satisfaction as established by the Bombay High Court in a relevant case. Consequently, the issue was remanded back to the AO with directions to allow the appellant to present relevant facts and accounts before making a decision, emphasizing the need for objective satisfaction before resorting to Rule 8D.

Issue 2: Disallowance of Portfolio Management fees:
The appellant challenged the disallowance of Portfolio Management fees while computing short term capital gains. The tribunal noted that a similar issue was decided against the appellant in a previous tribunal decision for an earlier assessment year. Therefore, following precedent, the tribunal decided this issue against the appellant.

Issues 3 & 4: Addition of write back from provision for Non-Performing Assets:
The appellant raised concerns regarding the addition of the write back from the provision for Non-Performing Assets to the 'Book Profits' under section 115JB of the Income Tax Act. The appellant argued that the amount had already been added in a previous assessment year and should not be included again. The tribunal found merit in the appellant's submissions and remanded the issue back to the AO for a fresh decision, instructing the AO to consider the appellant's contentions and issue a detailed order on the matter.

In conclusion, the tribunal allowed the appeal of the appellant for statistical purposes, remanding certain issues back to the Assessing Officer for reconsideration based on the arguments presented by the appellant.

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