TaxTMI 
TaxTMI 
2021 (10) TMI 913
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....ome Tax Officer, Ward 12(4), New Delhi [the Ld. AO] for assessment year 2009-10 was dismissed. Therefore, assessee is in appeal before us on three issues: No. 1 - Disallowance under Section 14A read with Rule 8D of Rs. 5,27,095/- and also [2] the addition of Rs. 1,21,59,988/- on account of addition of unexplained investment, [3] applicability of explanation to section 73 of the Act. 2. The brief facts of the case shows that assessee is stated to be engaged in making finance, advances, investment and trading. It is also stated that company purchased and sold shares from the market and through direct investment in the companies. It is also making finance and advance to various persons. It has filed its return of income declaring a loss of Rs....
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....isallowance u/s. 14A of The Act. Assessing Officer noted that assessee has investment as well as the stocks and is earning exempt income from both these portfolios. Therefore, Section 14A of the Act applies on it. He worked out 0.5% of the average value of investment for the purpose of disallowance of administrative expenditure at Rs. 5,27,095/- and disallowed the same. Assessee carried the matter before the ld. CIT (Appeals), who confirmed the disallowance. We find that assessee has shown dividend income in its profit and loss account of Rs. 5,94,012/- and also has debited the expenditure of Rs. 48,280/-. On page No. 13 of the Paper book it clearly shows that assessee has only claimed expenditure of Rs. 48,280/-. Therefore, naturally the d....
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....see is that the order-sheet entry dated 4.10.2011 is incorrect and no such details were asked. The assessee claims that the addition has been made without any notice to the assessee. On the merits of the case he referred to the transaction statement of the demat account of the assessee with National Security Depository Ltd. of the depository Alankrit Assignments Ltd. He submitted that the shares are received in this demat account through another DPID and further he referred to page No. 62 of the Paper book stating that all these shares have been received from Shri Balaji Traders, A-231, Derawal Nagar, New Delhi, Permanent Account Number ABAFS3304A. He also submitted the statement of loan of shares wherein it is claimed that the shares have ....
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.... not. He further submitted that it is highly unusual that why somebody will lend the shares to the assessee without any benefit. He further submitted that even before the co-ordinate bench assessee has submitted only the transaction statement of his demat account. He submitted that the complete demat account is not available in the Paper book, no confirmation of Shri Balaji Traders is available. No demat account of Shri Balaji Traders is furnished. In view of this, the lower authorities have correctly confirmed the addition. 9. We have carefully considered the argument of the assessee as well as the ld. DR and orders of the lower authorities. Apparently, it is seen that on 4.08.2011 the assessee has filed details of shares obtained on loan....
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....k lending has been accounted for in the books of accounts of the assessee and whether any profit or loss incurred on the sale or purchase of shares taken on loan; iii. The nature and genuineness of the transaction as to why anybody will give a loan of more than 18 scrips to an assessee between a span of only three days i.e. 12.11.2008 to 15.11.2008. iv. Relationship of the assessee with the stock lender; v. The details of re-payment/return of the stocks by the assessee; vi. Whether loan borrowing and lending of such stock is permitted in case of listed securities by Securities & Exchange Board of India; & vii. The assessee may also produce any further evidences to justify the above transaction. 10. The ld. CIT (Appeals) may consi....
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....aged in speculative activities or the Explanation to Section 73 do not apply. Thus, this ground of appeal is decided accordingly. 13. The order in this appeal was placed for pronouncement on 7 October 2021. However on that date, we received a detailed compilation by the assessee. Therefore, in the interest of justice, on the appointed date of pronouncement, we deferred it further to consider the arguments of the assessee. 14. In the written submission mostly the assessee has objected to the assessment proceedings before the learned assessing officer stating that there are some irregularities in the order sheet. The assessee has also submitted the affidavit of the chartered accountant who appeared before the learned assessing officer in as....