Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (4) TMI 403 - ITAT MUMBAIIncome from sale of shares - capital gains OR business income - Held that:- We found that shares costing for ₹ 3. 59 croress were realized for ₹ 14. 50 crores. The shares were sold during the period from April2007 to January, 2008 and fresh shares has been acquired during the period June, 2007 to March, 2008. In case of unquoted shares, the assessee has acquired the same during the period June, 2007 to March, 2008, which was acquired out of share application given in earlier years, which clearly indicates that assessee has not used borrowed funds for investment held either as on 31-3-2008 or 31-3-2007. The AO has failed to appreciate the factual position emerging out of the audited balance sheet to the effect that increased unsecured loans has been utilized for further advancing loans. Loans and Advances as on 31-3-2008 amounted to ₹ 20. 56 croress as against loans and loan of ₹ 8. 96 croress as on 31-3-2007. Thus, increase in loans and advances were much more than increase in unsecured loans. Accordingly, we do not find any infirmity in the order of CIT(A) for holding these shares as investment giving rise to the capital gain. The CIT(A) has properly appreciated the volume and frequency of the transaction, the assessee’s intention of investing in shares as well as department‟s conclusion of treating these shares as investment in the scrutiny assessment framed in earlier years. - Decided in favour of assessee. Disallowance u/s 14A - Held that:- No disallowance should be made under the head interest expenditure. Disallowance under Rule 8D (2) (iii) should be restricted to the expenses claimed in the P&L account, as disallowed in earlier year. See HDFC Bank Ltd (2016 (3) TMI 755 - BOMBAY HIGH COURT). Effective ground of appeal is allowed in favour of the assessee, in part.
|