TaxTMI 
TaxTMI 
2017 (5) TMI 210
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....ot been carrying on any business or has not carried on any activity to revive the business and thereby erred in confirming the order of the Assessing Officer. 2) On facts and circumstances, The Learned Commissioner of Income-tax (Appeals)-5, Mumbai, has erred in holding that the business is closed whereas the business of the Appellant is to do equity research and to maximize and/or guard against the risk of fluctuations in equity market and thereby erred in not allowing expenditure incurred in payment of salaries, rent, telephones, conveyance etc. which is incurred for carrying on business as Investors and/or traders in shares, securities, mutual funds etc. and has erred in confirming the order of the Assessing Officer. 3) On facts an....
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....s with LIC Housing Finance and L&T Finance Ltd, REC Bonds and interest on IT refunds cannot be treated as business income just because assessee company is registered as NBFC with RBI. The AO also observed that when the assessee was not engaged in the business of money lending, the interest income earned by it can be assessed as "income from other sources" only. For that reason the AO assessed the interest income amounting to Rs. 29,04,598/- as income from other sources u/s. 56 of the IT Act and held that the deduction there from could be allowed only u/s 57 of the IT Act. The assessee had shown dividend income of Rs. 22,16,1281- on FMPs & Equity, gain on sale of shares and Mutual funds of Rs. 47,86,055/-. The dividend and long term capital ....
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.... rates. The income during the year, as credited in the P&L A/c is from interest [Rs 29,04,598/-], dividend [Rs 32,16,128/-] and gain on sale of shares and Mutual funds [Rs 47,86,355/-]. No income from trading of any shares have been shown during the year. The Balance sheet reflects the shares held as stock in trade at Rs. 76,021 I-only. The same amounts stands reflected in its Balance sheet for A.Y. 2008-09 [i.e as on 31.03.2008]. It is also noted that out of the total share capital and reserves & surplus shown at Rs. 33,89,88,239/-, the investments in shares and Mutual funds amounts to Rs. 30,26,31,463/-. The goods block [fixed assets] is shows at Rs. 31,89,346/-. Thus it is very evident that no business activity has been undertaken by the....
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....[Rs.5,02,895/-], rent [Rs 9,82,776/-], electricity charges [Rs 2,43,376/-] etc. Thus it is observed that major activity of the assessee is to make investment in equity and Mutual funds based on the professional advice of its own competent personnel who are engaged in devoting their prime time in equity research by obtaining/collecting the relevant information. The expenses shown in Schedule 9 towards other cost mainly relates to such activities. The dividend as well as the long term capital gain is totally exempt thereon. Thus these expenses [employee cost as well as other cost] are with regards to the investment activities only, the income from which stands exempted and thus are to be excluded u/s 14A. Since in the present case there is no....
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....CIT. 6. Upon careful consideration we find that it is the submission of the Ld. Counsel of the assessee that assessee has shown substantial income in assessment year 2007-08 and 2008-09. It is also the submission of the Ld. Counsel of the assessee that there was a temporary lull in the business activity. However he has claimed that subsequently the business has picked up and in financial year 2015-16 and financial year 2016-17 assessee has shown substantial business income. We note that the balance sheet for the financial year 2015-16 was not before the authorities below. Furthermore the submission that there was a temporary lull and the business has subsequently picked up, was also not before the authorities below. However the propositi....