2025 (7) TMI 1112

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....-14. 1.1 The assessee/appellant has raised the following grounds of appeal for adjudication: - "1. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in making disallowance a sum of Rs. 84,70,700/- claimed by assessee company based upon MOU with M/s Top Line Traders Ltd. on the ground that sharing of such profit was a device adopted to evade proper payment of due tax. 2. That in any case and in any view of the matter, action of Ld. CIT(A) in confirming the action of Ld. AO in making disallowance a sum of Rs. 84,70,700/-, is bad in law and against the facts and circumstances of the case. 3. That having regard to the facts and....

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....0,700/- is concerned, the Ld. AR submitted that the appellant engaged in the business of purchase and sale of shares and in the relevant year, earned a sum of Rs. 1,12,94,285/- on purchase and sale of shares and entered into an MOU with M/s Top Line Traders Ltd., according to which advises have to be given by M/s Top Line Traders Ltd. from time to time and in consideration of such consultancy, the profits earned on purchase and sale of shares were to be shared between the appellant company and M/s Top Line Traders Ltd. and it is admitted that during the year, there was profit of Rs. 1,12,94,285/- on the purchase and sale of shares, appellant company claimed deduction of Rs. 84,70,700/- being 75% share into the said profits of M/s Top Line T....

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.... M/s Trustworthy Gems & Jewellery Pvt. Ltd. (assessee), as profit share during the F.Y. 2012- 13, and also confirmed that copy of agreement for this purpose has already been submitted. The Ld. AR also furnished the copies of ITR, computation of income and balance sheet of M/s Top Line Traders Ltd. for A.Y. 2013-14 which would show that amount of Rs. 84,70,700/- has been received and shown as 'Profit sharing income on share Trading' under the head 'Other Income'. 4.3. The Ld. AR submitted in reference to abovementioned factual matrix, as appellant was into the business of purchasing and selling of shares, it doesn't mean that an expert cannot be associated for undertaking the said activity, and by stating so that the assessee was already ....