2012 (10) TMI 1272

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.....M The appeal filed by the Revenue is against the order of the Commissioner of Income-tax (Appeals)-II, Ludhiana dated 25.05.2012 relating to assessment year 2008-09 against the order passed under section 143(3) of the Income Tax Act, 1961 (in short 'the Act'). 2. The grounds of appeal raised by the Revenue are as under: "1. (a) The Ld. CIT(A)-II, Ludhiana, on facts as well as in law, has erre....

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....ised various grounds of appeal. However, being confronted the learned D.R. for the Revenue fairly admitted that the assessee had shown income from sale of PMS as its business income and expenditure relatable to the same is allowable. However, disallowance under section 14A of the Act was warranted out of dividend income of Rs.65,283/-. The learned A.R. for the assessee pointed out that it was enga....

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....d as under: Particulars Amount Kotak Securities 1641331 ICICI Prudential 780748 STT {Not Claimed) 34858 Total 2456937 6. The total dividend income declared by the assessee was Rs.65,280/- and professional fee of Rs.5618/- was reduced from the PMS income. The assessee thus under the head 'income from business' had declared only the profit from PMS transactions excluding the dividend ....

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....Assessing Officer was of the view that the assessee could not claim the expenditure in the form of management fee, NSDL charges and STT paid for portfolio management service and other investments. The Assessing Officer thus disallowed expenditure of Rs.12,79,001/- as income of the assessee. The CIT (Appeals) deleted the said addition made by the Assessing Officer. 8. The perusal of the facts ref....