2012 (10) TMI 1131

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....stances of the case, Ld. CIT(A) is wrong and unjustified that provisions of Section 14A of IT Act 1961 are applicable without a speaking order on following decisions relied upon: (i) K. J. Arora-Vs. - DCIT (2009) 180 Taxman 131 (Del) (Mag) (ii) DLF Ltd. - Vs. - CIT (2009) 27 S0T22 (Del)  (b) That on the facts & in the circumstances of the Case, Ld. CIT(A) is wrong in holding that provisions of section 14A of IT Act, 1961 are applicable in terms of ratio of judgment of Kolkata High Court in the case of ISG Traders Ltd. ITA No.264 of 2003-2011- T10L -621- HC - KOL - IT. c ) That on the facts & in the circumstances of the Case, the action of Ld. CIT(A) to sustain addition u/s.14A of IT Act, 1961 as indicated in the....

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....d the provisions of section 14A of the IT Act. But the basis of the disallowances has not been worked out properly by the A.O. the A.O. is directed to disallow the expenses as claimed in the P/L account proportionately as per the provisions of the Act after verifying the various expenses claimed in the P/L account having nexus to earn the exempt income." 4. The assessee is not satisfied and is in appeal before us. 5. Having heard the rival contentions and having perused the material on record, we agree with the learned counsel that in view of limitations on his powers u/s.251, it is no longer to a CIT(A) to remit the matter to the file of the Assessing Officer with or without any directions; he ought to have decided the matter on meri....

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.... case, as disallowance u/s 14A itself stands deleted on merits, this aspect of the matter is now somewhat academic. 7. The appeal of the assessee is thus allowed in the terms indicated above. 8. In revenue's appeal i.e. 1741/Kol/2011, the grievance raised by the Appellant is as follows:- "1) That the Ld. CIT(A) has erred in deleting the addition of Rs. 13,54,234/- made by the A.O. on the ground of speculation loss, without considering the provision of Sec. 43(5)(d) of the Act, 1961 which defines the 'eligible transaction' for trading in derivatives. 2) That the leave to add, alter or modify any ground as may arise in the course of appellate proceedings, be granted." 9. Briefly, the relevant facts are as follows. D....