TaxTMI 
TaxTMI 
TaxTMI 
2012 (3) TMI 494
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.... and 2007-08 vide their separate orders dated 13.10.2008 and 24.11.2009 respectively. 2. Both the appeals of revenue are delayed by 72 days and 71 days respectively. At the outset, the ld. Counsel for the assessee conceded the position that he has no objection in case the delay is condoned. Since the ld. Counsel for the assessee has conceded the position and in view of the reasons given in condonation petition, we condone the delay and admit the appeals. 3. The first common issue in these appeals of Revenue is against the order of CIT(A) allowing the claim of setting off of short-term capital gains against loss in speculation business. For this, assessee has raised common ground in both the issues. However, we are taking the ground as rai....
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.... books of accounts and audited as per the provisions of Income-tax Act as well as Companies Act. AO, in both the years, discussing the provisions of section 73 but without disclosing the facts of the case, held that the declared trading profit is not speculative profit and treated the same as non-speculative profit disallowing speculation loss. Aggrieved, assessee preferred appeal before the CIT(A), who allowed the claim of assessee in both the assessment years, 6. In assessment year 2006-07, the facts narrated in the P&L a/c, Schedule 12 are as under: SCHEDULE-12 PROFIT/(LOSS) FROM OPFPATTONS : SHARES & SECURITIES Year ended 31st March, 2006 (In Rs.) Sales 165,225,960 Closing Stock 32,403,560 197,629,520 Le....
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....disputed. Revenue could not contend that these facts are in dispute that the principal business of assessee is that of dealing in shares or stocks or commodity exchange. It means that the nature of the business of assessee is speculative business, in view of clear language of Explanation to section 73 where a company carrying on business of purchase and sale of shares shall be deemed to be carrying on speculation business. This position is also explained by him. CBDT circular no. 204 dated 24.07.1976, which contains explanatory notes to Taxation Laws (Amendment) Act, 1975 expresses that the Explanation to section 73 includes cases of group companies but that does not mean that Explanation must be restricted only to group companies and not t....
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....aim of assessee and the order of CIT(A) is upheld. These grounds of revenue's appeals are dismissed. 7. The next common issue in these appeals of revenue is in regard to deletion of disallowance made by AO by invoking the provisions of section 14A of the Act. 7.1 We have heard rival contentions and facts of the case. We find that in assessment year 2006-07, CIT(A) has restricted the disallowance as Rs. 25,000/- as against total disallowance of Rs. 68,930/- and in assessment year 2007-08, disallowance is restricted to Rs. 2,511/- as against the disallowance made by AO at Rs. 22,81,322/- by invoking the provisions of section 14A of the Act r.w.s. Rule 8D of the I. T. Rules, 1962. We find that Hon'ble Bombay High Court in the case of Godrej ....
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....onable basis for effecting the apportionment. While making that determination, the Assessing Officer shall provide a reasonable opportunity to the assessee of producing its accounts and relevant and germane material having a bearing on the facts and circumstances of the case" We further find that the Tribunal, Kolkata Bench on the self same facts in the case of Sagrika Goods & Services Pvt. Ltd. Vs. Income-tax Officer, I.T.A No. 1278/Kol/2010, Assessment Year 2005-06 dated 24th September, 2010 has held as under: "5. Heard the rival submissions, perused the material available on record and the decisions relied on by the Ld. Authorised Representative of the assessee cited supra. We find that on the issue of disallowance u/s. 14A, this Benc....