TaxTMI 
TaxTMI 
2016 (10) TMI 491
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....dition confirmed by the Learned Commr. Of Income Tax (Appeals) may be deleted. 2. On the facts and circumstances of the case the Learned Commr. Of Income Tax (A) has erred in confirming the disallowance made by the Learned Assessing Officer regarding diminution in the value of the shares amounting to Rs. 52,31,313/-. The appellant prays that they are entitled to deduction of Rs. 52,31,313/- and the addition made by the Learned Assessing Officer and confirmed by the Learned Commr. Of Income Tax (Appeals) may be deleted. 3. The Learned Assessing Officer has erred in levying interest u/s.234B at Rs. 14,12,268/- & Rs. 64,299/- under Sec. 234C. The appellant denies the liability of payment of interest u/s.234B & Sec.234C. On the facts & circumstances of the case the appellant submit that levy of interest u/s.234B of Rs. 14,12,268/- and Rs. 64,299/- under Sec 234C is not justified and be deleted." 3. The revenue has also raised the following grounds:- "1. On the facts and in the circumstances of the case and in law, the Learned CIT(A) erred in directing the AO to compute the Long Term Capital Loss on account of sale/transfer of shares of IL & FS during the y....
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....-. I.T.A. No.5235/M/2014 (Assessee's Appeal) ISSUE NO.1:- 5. Assessee has challenged the disallowance restricted by the learned CIT(A) to the tune of Rs. 1,35,25,433/- u/s.14A of the Act. In the relevant assessment year the assessee received the dividend income of Rs. 7,33,91,985. However, at the time of filing of return, the assessee disallowed the interest expenses to the tune of Rs. 25,10,473/- u/s.14A of the Act. The contention of the assessee is that the expenditure which has not been incurred to earn the exempt income is not liable to be considered while application of the provision u/s.14A read with Rule 8D of the Act. The contention of the assessee is also that the assessee incurred only the interest expenditure which has not been claimed and deducted on account of interest u/s.14A of the Act. The assessee has filed the details at page 20 of the paper book in which he has shown the expenditure on different head. The assessment of the assessee is for the year of 2009-10. No doubt the provision u/s.14A r.w. Rule 8D of the Act is applicable. It is not in dispute that the principle laid down in case of Godrej & Boyce Manufacturing Company Ltd. Vs. DCIT, 234 CTR 1 (Bom)....
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....ed by the CIT(A). However, the assessee has also placed reliance on the law settled by the Hon'ble Supreme Court in case of United Commercial Bank reported in 240 ITR 355 but the CIT(A) nowhere discussed the said law and endorsed the view of the Assessing Officer. CIT(A) was also of the view that the trust was not carrying out the activity of shares therefore the contention of the appellant has been declined. Infact, assessee in his accounts books was treating the investment as stock in trade and accordingly books of accounts were being maintained. Therefore, in the said circumstances the finding of the CIT(A) on this issue was on wrong path. Moreover, the law relied by the assessee was not seen and discussed. The details of the investment and diminution of value of shares has been furnished which lies at page 15 of the paper book. No doubt it is to be seen whether diminution of investment in the shares is liable to allowable or not. This matter of controversy has already been adjudicated by the Hon'ble Supreme Court in case of United Commercial Bank reported in 240 ITR 355 wherein this controversy has been decided in favour of the assessee against the revenue. The observation of t....
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....age cost method adopted by the Assessing Officer is liable to be implemented whereas the Assessing Officer disallowed the Long Term Capital Loss to the tune of Rs. 7,50,92,618/-. Before going further it is necessary to advert the finding of the learned CIT(A) in this regard. "4. I have duly considered the submission of the appellant and in the said respect it is relevant to refer to section 45(2A) of Act, which is as follows: "(2A) Where any person has had at any time during previous year any beneficial interest in any securities, then, any profits or gains arising from transfer made by the depository or participant of such beneficial interest in respect of securities shall be chargeable to income-tax as the income of the beneficial owner of the previous year in which such transfer took place and shall not be regarded as income of the depository who is deemed to be the registered owner of securities by virtue of subsection (1) of section 10 of the Depositories Act, 1996, and for the purpose of - (i) section 48; and (ii) (ii) proviso to clause (42A) of section 2, the cost of acquisition and the period of holding of any securities shall be....