TaxTMI 
TaxTMI 
2025 (11) TMI 1313
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....ssessment year 2018-19. 2. In this appeal, the assessee has raised the following grounds: - "1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in confirming the income of the appellant at Rs. 3,32,05,810/- as against the income declared in the return of income at Rs 1,98,98,240/-. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in confirming the addition of Rs. 6,74,600/- made by the Ld. AO by wrongly invoking the provisions of s.14A of the Act. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) wrongly confirmed the addition of Rs. 1,26,32,970/- made by the Ld. AO even when the said amount was not in the natu....
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....th the submissions of the assessee and, by applying the provisions of section 14A read with Rule 8D of the Rules, made a disallowance of Rs. 6,74,600/- as follows: - Opening value of investments as on 01.04.2017 Rs. 5,31,96,146 Closing value of investments as on 31.03.2018 Rs. 8,19,24,626 Average value of investments Rs. 6,74,60,054/- 1% of average value of investments Rs. 6,74,600/- 6. The learned CIT(A), vide impugned order, dismissed the grounds raised by the assessee on this issue and upheld the disallowance made under section 14A read with Rule 8D of the Rules. Being aggrieved, the assessee is in appeal before us. 7. During the hearing, the learned Authorised Representative ("learned AR") reiterated the su....
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.... the profit and loss account of the assessee, the only source of income is on account of trading in shares. The assessee does not maintain any separate portfolio for investment and trading activities. Besides, it cannot be stated with certainty that only the shares that are appearing in his investment portfolio are the ones that would have yielded exempt income. Since the assessee's main activity is dealing in shares, therefore the possibility of earning dividend income cannot be ruled out in case of other shares. The same is evident from the fact that though the assessee's investment is of Rs. 8.21 Cr, the assessee has earned exempt income on the same of Rs. 2.34 Cr. The assessee has also claimed expenses towards demat charges, STT....
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....hich does not or shall not form part of total income. 12. In the present case, no direct expenditure was incurred by the assessee for earning the exempt income. Therefore, the AO computed the disallowance of Rs. 6,74,600/- (being 1% of the average value of average investment of Rs. 6,74,60,054/-) as per Rule 8D(2)(ii) of the Rules. 13. During the hearing, the learned AR on a without prejudice basis by placing reliance upon the proviso to Rule 8D(2) of the Rules submitted that the disallowance as computed under the provisions of Rule 8D cannot exceed the total expenditure claimed by the assessee. Accordingly, the learned AR submitted that in the year under consideration, the assessee claimed an expenditure of Rs. 69,455/- in its profit....
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....m that the refund was a capital advance. Accordingly, the AO made an addition of Rs. 1,26,32,970/- on the basis that the ledger of Mr. Sanjay Kothari in the books of the assessee shows frequent receipts and payments and the assessee has utilized the amount in his individual capacity as well as HUF for F&O business. The learned CIT(A) vide impugned order, dismissed the ground raised by the assessee on this issue and upheld the addition made by the AO. Being aggrieved, the assessee is in appeal before us. 17. We have considered the submissions of both sides and perused the material available on record. In the present case, there is no dispute regarding the fact that there were multiple transactions of receipt of payment of money between th....