2012 (10) TMI 1272

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....are as under: "1. (a) The Ld. CIT(A)-II, Ludhiana, on facts as well as in law, has erred in deleting the disallowance of Rs.12,79,001/- made by the A.O. u/s 14A of the Income Tax Act, 1961. (b) The Ld. CIT(A)-II, Ludhiana has failed to appreciate that the Hon'ble Calcutta High Court in the case of M/s Dhnuka & Sons Vs. CIT (244 CTR 511) has also held, in principle, that where the assessee carries on the business of Sale & Purchase of share and accordingly earns dividend income as its business income, expenses attributable to earnings of such income are liable to be disallowed u/s 14A of I.T. Act. (c) The Ld. CIT(A)-II, Ludhiana has further failed to appreciate that the Management Fee and other charges are dire....

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....1 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 income. The assessee had claimed total expenditure of Rs.12,79,001/- on account of management fee/NSDL charges from the profits accrued on PMS transactions and the corresponding expenses are detailed as under: Particulars   FMS Scheme Code Investments Turnover Dividend Received Management Fee/NSDL ....