AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2018 (8) TMI 668
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....ncome for the A.Y under consideration declaring total income Rs. Nil and claimed carry forward loss of Rs. 9,76,081/-. Notices u/s. 143(2) and 142(1) of the Act were issued. In response to which, the A/Rs representing the assesse appeared before he AO in assessment proceedings and filed books of account, relevant bills, vouchers and bank statement. The AO determined the assessed income at Rs. 65,85,920/- by making the following additions vide order passed u/s.143(3) of the Act dt. 23-03-2013:- 1. Disallowance u/s. 14A Rs. 5,47,941/- 2. Disllowacne on loss in F &O Rs. 69,53,809/- 3. Disallowance of membership fees Rs. 60,000/- 4. Disallowance of Interest on FBT Rs. 252/- Rs.65,85,920/- 3. The Revenue filed ....
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....work out the disallowance. Relevant portion of which is reproduced herein below for better understanding:- "5. We have heard the rival submissions. We find that the Hon'ble Supreme Court in its recent decision in the case of Maxopp Investment Ltd vs. CIT reported in [2018] 91 Taxmann 154 (SC) dated 12.02.2018 had held that the provision of section 14A would be applicable even when the shares are held as stock-in-trade in view of the fact that the resultant dividend income earned would be exempt in any case. Hence, we hold that the applicability of provision of section 14A in respect of shares held as stockin- trade has been settled by the aforesaid Hon'ble Supreme Court's decision. Now, the short point that arises for our consideration is....
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....F & O (Future & Options)loss of Rs. 69,53,809/-. 9. During the assessment proceedings the AO found that the assesse debited an amount of Rs. 69,53,809/- on account of loss on derivatives. Before the AO, the assesse stated that it offered the said loss under F&O obligation margin through M/s. Spark Securities P.Ltd. ( in short, 'SSPL') The AO requested the National Stock Exchange (NSE) for verification of veracity and creditworthiness of the total transactions and to confirm whether the said transactions duly recorded or settled as per the records of NSE. In response, the NSE reported that no trading were found for the combination of member and client code during the period from April 01, 2009 to March, 31, 2010 in Future & Options segment"....
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.... has reiterated his same submissions as made before the CIT-A and placed reliance on the order dt. 15-12-2005 of ITAT Bombay in the case of supra and referred to page-39 of the paper book and argued that the Hon'ble High Court of Bombay in the case of Shri Mukesh Ratilal marolia (ITA No. 456 of 2007 dt. 7-9- 2011 confirmed the view taken by the ITAT Bombay in the case of supra and further submitted that the facts of the present case are identical to the facts of the case of the Hon'ble High Court of Bombay in the case of supra and referred to para 4 to 7 of the order. 13. Heard rival submissions and perused the record including the case laws as available before us. We find the facts of the case before the Bombay Tribunal was that the asses....
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....d by the assesse was dismissed by CIT(A). 5. On further Appeal, the ITAT by the impugned order allowed the claim of the Assessee by recording that the purchase of shares during the year 1999-2000 and 2000- 2001 were duly recorded in the books maintained by the Assessee. The ITAT has recorded a finding that the source of funds for acquisition of the shares was the agricultural income which was duly offered and assessed to tax in those Assessment Years. The Assessee has produced certificates from the aforesaid four companies to the effect that the shares were in-fact transferred to the name of the Assessee. In these circumstances, the decision of the ITAT in holding that the Assessee had purchased shares our of the funds duly disclosed by ....