2011 (4) TMI 1423

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....e. 2. None appeared on behalf of the assessee though the adjournment was sought by the assessee vide his application earlier on 11.01.2011 and the case was adjourned on the request of the learned counsel for 06.04.2011. Hence, the adjournment application filed on behalf of the assessee was dismissed for want of plausible reasons. We, therefore, decided to dispose of the appeal and the cross objection after hearing the learned Departmental Representative. 3. The brief facts of the issue involved in appeal of Revenue are that the Assessing Officer treated the following amounts as share trading income taxable under the head business : i) Long term capital gains on sale of shares before 01.10.2004  Rs.1,71,530/- ii) Short te....

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....e order of CIT(A) on the issue raised by revenue in its appeal. We have already dismissed the appeal of the Revenue, therefore, this ground becomes infructuous and dismissed as such. 7. Ground No. 2 relates to disallowance of Rs. 1,07,375/- u/s. 40(a)(ia). The Assessing Officer noted from the profit and loss account that the assessee has debited a sum of Rs. 1,07,375/- as interest to the creditors. Since the assessee has not deducted any tax at source, therefore, the Assessing Officer disallowed the same u/s. 40(a)(ia). When the matter went before the CIT(A), the CIT(A) confirmed the order of Assessing Officer by observing as under :- "I have considered the rival contentions and find that section 40(a)(ia) stipulates as under: ....

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...." 8. We have heard the learned DR and have carefully considered his submissions alongwith the facts on record before the authorities below. The CIT(A) has given finding of fact that fortis securities have taken of Rs. 1,07,375/- on delayed payment on speculation and F&O transactions. Such charges are undisputedly, in the nature of interest. The interest is defined u/s. 2(28A) which means interest payable in any manner in respect of any moneys borrowed or debt incurred (including a deposit, claim or other similar right or obligation) and includes any service, fee or other charge in respect of the moneys borrowed or debt incurred or in respect of any credit facility which has not been utilized. Fortis security has charged the sum towards t....

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....the liabilities of the share broker were outstanding. The CIT(A) after verifying schedule F of the balance sheet consisting of the details of investment and deposits, noted that the assessee has not utilized the OD for the business purposes. Therefore, he upheld the disallowance. 11. We have heard the learned DR. We find that the CIT(A) after appreciating the evidence has given his finding of fact. No contrary evidence was brought to our knowledge or filed before us, which may compel us to take a view against the order of CIT(A). We, therefore, confirm the order of the CIT(A). Thus, this ground of cross objection stands dismissed. 12. Ground No.4 relates to the 10% disallowance out of telephone and vehicle expenses. The Assessing Offi....