TaxTMI 
TaxTMI 
2015 (8) TMI 79
X X X X Extracts X X X X
X X X X Extracts X X X X
....r of Income Tax (Appeals) has erred in law and on facts in confirming the disallowance of the entire business expenses of Rs. 1,93,045/ - u/ s 14A r.w. Rule 8D of the Income Tax Act,1961 without properly considering the fact that the appellant is having substantial Business Income of Rs. 78,48,948/ - as compared to the tax free dividend income of Rs. 8,95,949/-. 2. The learned Commissioner of Income Tax (Appeals) has erred in law and on facts in confirming the interest income of Rs. 22,55,865/- as Income from Other Sources instead of Business Income as claimed by the appellant in view of the facts that the appellant is carrying on finance business as per Partnership Deed. 3. The learned Commissioner of Income Tax (Appeals) has erred i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eld that where the shares were purchased merely for trading in the same and earning of dividend income was only incidental, no part of interest paid on investment or the depository/ custodial charges could be disallowed by invoking section 14A- The AO cannot merely allocate the expenses in relation to trading results by proportionately disallowing the same. The assessee further relies on judgement of Hon'ble Bombay High court in the case of CIT Vs. Reliance Industries Ltd.[2011] 39 ITR 632 (Bom). On the other hand, ld. DR relied on the orders of the lower authorities. 6. We have considered rival contentions and found that during the year assessee has received dividend income of Rs. 8,95,949/-, interest income of Rs. 22,55,865/- and o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....case of Godrej & Boyce Mfg. Co. Ltd., 328 ITR 81. Considering the amount of expenditure incurred for earning the total income main part of which was taxable i.e. Rs. 78.48 lakhs as against exempt income of Rs. 8.95 lakhs, we deem it appropriate to restrict the disallowance to the extent of Rs. 20,000/-. Accordingly, the AO is directed to restrict the disallowance u/s.14A to Rs. 20,000/-. 7. The next grievance of the assessee relates to taxing the business income earned in the form of interest as income from other sources. We have considered rival contentions and found that in addition to the share business assessee was also carrying on business of finance as per the clause 4 of partnership deed, wherein assessee has earned interest incom....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... We have considered rival contentions. In view of our finding given in para 7 hereinabove, we direct the AO to treat the interest income as business income and to recompute assessee's claim of partners remuneration accordingly. 9. The revenue is aggrieved by action of CIT(A) for holding that loss suffered by the assessee on account of future and options transactions has to be considered as business loss and not be considered as speculation loss. We have considered rival contentions and found that the AO in the assessment order observed as under :- "It is seen from the computation of income that assessee has set off of carried forward loss for A.Y.2003-04 at Rs. 18,36,430/- and of A.Y.2005-06 at Rs. 20,96,497/- and consider as unab....