TaxTMI 
TaxTMI 
2021 (6) TMI 838
X X X X Extracts X X X X
X X X X Extracts X X X X
....nts submitted by the assessee during appellate proceedings, when the same was not covered under exceptions mentioned in Rule 46(A)(1) and Assessing Officer had not been allowed reasonable opportunity to examine the evidence or document produced as provided in Rule 46(A)(3). 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in allowing the disallowance of stamp duty of Rs. 1,03,413/- on the basis* of documents submitted by the assessee during appellate proceedings, when the same was not covered under exceptions mentioned in Rule 46(A)(1) and Assessing Officer had not been allowed reasonable opportunity to examine the evidence or document produced as provided in Rule 46(A)(3). 2. On the facts and ci....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the submissions of the assessee, learned CIT(A) observed that assessee is an individual and is engaged in the business of share trading and derivative trading. He observed that the assessee derives income mainly from remuneration and share of profit from partnership firm trading in cash segment, derivative of futures and options and commodities. He observed that the AO disallowed the said expenses of brokerage on the ground that the loans were not incurred for the purposes of business and the expenses paid to the brokers are capital in nature. He also observed that assessee has submitted a detailed chart mentioning detailed bifurcations of brokerage paid to different brokers with their names, PAN No. and TDS deducted on various dates et cet....
X X X X Extracts X X X X
X X X X Extracts X X X X
....gard to ground No.2, the relevant facts are, during assessment proceeding AO observed that assessee had claimed deduction for a stamp duty expenses amounting to Rs. 1,03,413/- and according to him, it is not being incurred for the purpose of business and therefore, he disallowed the same since assessee has not filed specific submission on this expenditure and according to assessing officer the said expenditure is not incurred for the purpose of business and also not incurred for any of the income offered for taxation during this year. Aggrieved, assessee submitted before Ld CIT(A) that assessee incurred stamp duty in connection with his business in share trading and derivative trading business. After considering the submissions of the asses....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ce under section 14A read with rule 8(2)(iii) aggregating to Rs. 3,21,55,578/-. 6. While calculating average investments for disallowance under section 14A read with rule 8D, AO included credit balances with firms and payable to the firm. Aggrieved with the above inclusion of credit balance of capital investment in the firm as part of investment in the calculation, assessee preferred an appeal before Ld CIT(A) and after observing the submissions of the assessee and the financial statement submitted before him, he observed that credit balances with the firm are actually liability of the partner and accordingly the appellant has shown the said balances under the head current liabilities of the Balance Sheet. He observed that the AO has in ad....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s which has actually earned exempt income. In the given case, assessee has earned exempt income from dividend earned out of investment in shares held for stock as well as investment. Similarly, assessee also earned exempt income of share of profit from the partnership firm. There's no dispute that assessee has earned exempt income through partnership firm. The portion of investment made by the assessee in the partnership firm should also be part of investment in earning the exempt income. Since no financial statements were submitted before us, we are not in a position to appreciate the findings of Ld CIT(A). However, in our view, partnership firm is separate entity and the investment made by the assessee in the firm should be part of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....before Ld CIT(A) and submitted that the loss of Rs. 221,10,920/- on account of sale and purchase of shares by actual delivery as against cash segment trading loss. After considering the submissions of the assessee, Ld CIT(A) observed that from the documents submitted before him that shares are purchased and sold, delivery of shares and transaction notes along with details of scripts traded on various dates clearly evident that the assessee had suffered loss of Rs. 221,10,90/- in its share trading segment. He observed that the above loss is related to the transaction of sale and purchase of shares where there is actual delivery happened. He observed that the provision of section 43(5)(d) of the Act is applicable only on derivative trading no....