TaxTMI 
TaxTMI 
2017 (12) TMI 613
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.... the assessment year 2011-12 vide order dated 25-02-2014 under section 143(3) of the Income Tax Act, 1961(hereinafter 'the Act'). 2. The first common issue in these cross appeals is as regards to the order of CIT(A) restricting the disallowance at 51,11,981/-. For this Revenue has raised following grounds: - "1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in directing the AO to delete the disallowance of Rs. 51,11,981/- made by the Assessing Officer u/s 14A read with rule 8D of the income Tax Act. 1961 relying on the decision in the ease of India Advantage Fund." 2. On the facts and in the circumstances of the case and in law, the 14. CIT(A) further erred in not appreciating the fact that the issu....
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....f the above, it can be concluded that the appellant had mixed bag of shares and which included stock in investment as well as stock in trade both. Accordingly, the AO is directed to re-compute calculation of disallowance u/s.14A r.w.r.8D(2Xii) of I T Rules, 1962 in view of the above facts and modify the disallowance from Rs. 8,18,090/- to the fresh figure which can be arrived at only on the figure of stock of investment as reflected in the Balance Sheet Schedule F of the Audited Accounts. As regards disallowance of Rs. 65,027/-, no worthwhile defence have been put forward during the appellate stage. In such situation, it can be clearly concluded that there will be some administrative and other general expenses which can be disallowed u/r....
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....dent of Hon'ble jurisdictional High Court in Revenue's favour. Accordingly, we are of the view that the issue is squarely covered and hence, we restrict the disallowance at Rs. 1,51,348/- to the extent of exempt income. We direct the AO accordingly. 6. The next issue in assessee's appeal in ITA No. 3323/Mum/2016 is as regards to the order of CIT(A) confirming the action of the AO in not allowing carry forward of speculation loss at Rs. 1,04,65,899/- instead restricted the carry forward only at Rs. 56,42,063/-. For this Assessee has raised following ground No. 2 : - "2. The Learned CIT(A) erred in not allowing carry forward of speculation loss of Rs. 1,04,65,899/- in place of Rs. 56,42,063/- by holding that appellant should have moved an ....
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....rn of income at Rs. 56,42,063/- but AO himself had noted the correct speculation loss after verifying from the records is at Rs. 1,04,65,899/-. According to the learned Counsel, the CIT(A) should have allowed this speculation loss, whereas, he only admitted that this loss is genuine loss but stated that the assessee should have moved a rectification application to the AO under section 154 of the Act. He read out Para 4.3 of the CIT(A)'s order which reads as under: - "4.3. I have considered the stand of the AO as well as submission of the appellant. The main crux of the appellant's submission is that AO has made mathematical error while quantifying the amount of disallowance. This being the case, the issue becomes whether the disallowa....