TaxTMI 
TaxTMI 
2019 (7) TMI 2087
X X X X Extracts X X X X
X X X X Extracts X X X X
....8, Mumbai in appeal No. CIT(A)-8/IT-170/16-17 dated 04/09/2017 (ld. CIT(A) in short) against the order of assessment passed u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 18/03/2016 by the ld. DCIT Circle 3(2)(1), Mumbai (hereinafter referred to as ld. AO). 2. The ground No.1 raised by the revenue is with regard to the action of the ld. CIT(A) deleting the disallowance of Rs.58,62,087/- made u/s.14A of the Act read with rule 8D of the rules. 3. The brief facts of this issue are that the assessee is engaged in the business of investment banking and financial advisory services. The ld. AO from the perusal of the computation of the income of the assessee observed that it had claimed exempt income in the for....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... relied on the said order of this tribunal in assessee's own case, one of which had also been approved by the Hon'ble High Court. Hence we do not find any infirmity in the order of the ld. CIT(A) granting relief to the assessee. Accordingly, ground No.1 raised by the revenue is dismissed. 6. Ground No.2 raised by the revenue is with regard to the action of the ld. CIT(A) directing the ld. AO to delete the disallowance of Rs.56,48,000/- made on account of mark to market losses. 6.1 We have heard rival submissions and perused the material available on record. We find that the brief facts of this issue are that the assessee had acted as a Lead Manager to the public issue of certain listed companies. One of the activities of the assessee ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... is not relevant as to whether the assessee had made investment in shares pursuant to underwriting contract or otherwise. The circumstances under which the shares were purchased are not relevant to decide the character of the transaction. We find from the treatment given by the assessee in its books of accounts with regard to the said acquisition of shares of Axis IT&T Ltd., right from the time of purchase i.e., in A.Y.2004-05, the same was held as stock in trade by the assessee. This fact has been accepted by the revenue in the past. Once the shares are held as stock in trade, obviously the shares at the end of each year had to be valued at lower cost or market price as on 31st March. From the aforesaid table, it could be seen that assesse....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed. 8. The ground No.4 & 5 raised by the revenue are general in nature and does not require any specific adjudication. CO No.04/Mum/2019 (A.Y.2013-14) 9. The Cross objection preferred by the assessee is with regard to consideration of net interest paid (i.e. after reducing the interest income earned) for the purpose of computing disallowance under second limb of rule 8D(2) of the rules. In view of our decision rendered in ground No.1 of revenue hereinabove, the adjudication of this ground in cross objections of the assessee becomes academic in nature. Accordingly, the cross objections of the assessee are allowed. 10. In the result, appeal of the revenue is dismissed and cross objection is allowed. Order pronounced in the open....