2018 (3) TMI 1409

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....Ld AO for the assessment year 2012-13 without having regards to the submissions made by the assesse. 2. That the CIT (Appeals)/ AO has erred on facts and under the law in taxing the income from long term listed equities of Rs. 25,13,359 as business income, without going into the facts of the relevant year and ignoring the CBDT's circular. 3. That the CIT (Appeals)/AO has erred on facts and in law in increasing the disallowance u/s 14A by Rs. 43,75,447, without factoring the assesse himself had disallowed Rs. 767286. 4. That the CIT (Appeals)/ AO has erred on facts and in law in disallowing the business expenses of Rs. 15,68,000 on adhoc basis without giving reasons as to how the figure of Rs. 15,68,000 is worked o....

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....ties. The assessee is Non Banking Financial Company and income from capital gains where investment made in equities are sold. The assessee treated long term capital gain from sale of equities held for more than 12 months exempt u/s 10 (38) of the Act. The Assessing Officer treated it as business income. Now, the above issue is squarely covered in favour of the assessee by Circular No. 6 dated 29.02.2016 issued by CBDT. The above circular speaks that if shares are held for more than 12 months, if assessee shows it as LTCG, same should be accepted. 7. In view of above facts we are of the opinion that when the assessee himself has treated the income arising from sale of securities held for more than 12 months as capital gains, there is no r....

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....the disallowance cannot be made by invoking Rule 8D of the income rules. He further reiterated on merits his submission before the CIT (A). 11. The Ld. DR vehemently supported the order of the CIT (A) and the Assessing Officer. 12. We have carefully considered the rival contentions as well as perused the orders of the lower authorities. The assessee has earned dividend income of Rs. 26,43,57,693/- which is exempt u/s 10 (34) of the Act. While filling the return of income assessee on its own disallowed Rs. 767286/- u/s 14 A. The assessee has given a detailed computation for the same. 13. The Ld. Assessing Officer did not say that how the claim of the assessee is not correct. Assessing Officer has not recorded satisfaction that how t....