TaxTMI 
TaxTMI 
2015 (1) TMI 1205
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....ounds raised by the Revenue for assessment year 2008-09 i.e. I.T.A. No.419/Lkw/2012 are as under: "1. Whether on the facts and circumstances of the case, the Ld. Commissioner of Income Tax(A)-II was justified in ignoring the facts that the issue under consideration is not settled yet. The Kolkata High Court in his decision in the case of Dhanuka & sons Vs CIT has decided that the it was for assessee to show by production of materials that those shares were acquired from funds available in its hand at relevant point of time without taking benefit of any loan. 2. Whether on the facts and circumstances of the case, the Ld. Commissioner of Income Tax(A)-II was justified to decide the expenditure as revenue expenditure without giving any rea....
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....ded by the Tribunal in favour of the assessee but in those years, the decision of the Tribunal was on the basis that Rule 8D is not applicable but in the present cases, the assessment years involved are 2008-09 and 2009-10 and therefore, Rule 8D is applicable and therefore, this Tribunal decision is not applicable in the present years. 6. Learned AR of the asessee has also placed reliance on the decision of Hon'ble Karnataka High Court rendered in the case of CCI Limited vs. JCIT, 250 CTR 291 wherein it is held that if the assessee is dealer in shares, it has to be accepted that dividend income is incidental to his business of dealing in the shares and therefore, the expenditure incurred in acquiring shares, cannot be apportioned to th....
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....h these items were clubbed together in the present year for showing as income under the heading profit from trading in securities and therefore, it cannot be accepted that the assessee company is dealing in shares merely because in one year, a different nomenclature is given to report the income because, generally trading income is not reported in net figure but is reported by showing opening stock, purchase, closing stock and sale. A specific approved method of valuing closing stock is also disclosed in such cases which has to be consistently followed by the assessee. In the present case, all these features are missing. Therefore, this judgment of Hon'ble Karnataka High Court is not applicable because the assessee is not dealer in pres....
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....hows that as per the assessee also, the company is not dealing in shares because had the assessee company was dealing in shares, it must have given quantitative details as required by paragraph 3 of part II to the Schedule VI of the Companies Act, 1956 for shares also as was given for other commodities. Hence we have no hesitation in holding that as per the facts coming out from above discussion, the assessee company was not dealing in shares. 7. Reliance was also placed by Learned A.R. of the assessee on a Tribunal decision rendered in the case of ACIT, Bareilly vs. Dhampur Sugar Mills (P) Ltd. Bijnor in I.T.A. No.542/Lkw/2011 dated 31/01/2014, copy of which is available on pages 44 to 51 of the paper book. In this case, it was noted by t....