2013 (1) TMI 882

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.... has declared the income from salary, house property, loss under the head profit/gains of business, capital gain and income from other sources. During the course of assessment proceeding it was inter alia observed by the A.O. that the assessee has shown short term capital gain on sale of shares of ₹ 30,10,828/-and against the said short term capital gain the assessee has claimed following expenses:- Interest paid on loan Rs.16,45,880/- Processing fees Rs.6,726/- Demant charges Rs.12,142/- Membership subscription Rs.7,047/- Rs.16,71,795/- On being asked as to why the said expenses are allowable, it was, inter alia, submitted by the assessee that the aforesaid expenditure of ₹ 16,71,795/- has been incurred wholly and ....

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....ssessment at an income of ₹ 39,26,400/- vide assessment order dtd.18-12-2009 passed u/s 143(3) of the Act. On appeal, the ld. CIT(A) while agreeing with the views of the A.O. confirmed both the disallowances made by the A.O. 3. Being aggrieved by the order of the ld. CIT(A) the assessee is in appeal before us. 4. Ground No. 1 is against the sustenance of disallowance of various expenses of ₹ 16,71,795/-. 5. At the time of hearing, the ld. counsel for the assessee submits that at this stage he is pressing only the sustenance of of disallowance of interest of ₹ 16,45,880/- and is not pressing the other disallowances. He further submits that since the payment of interest is the cost of investment, therefore, it is allowabl....