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2018 (5) TMI 345 - ITAT MUMBAIDisallowance under Section 14A - CIT(A) upheld the contention of the assessee that the disallowance under Section 14A cannot exceed the dividend earned - Held that:- The issue stands covered in favour of the assessee by case law Cheminvest Ltd. vs. CIT [2015 (9) TMI 238 - DELHI HIGH COURT] as held that disallowance under Section 14A cannot exceed the dividend income earned. Accordingly in the background of aforesaid precedents we do not find any infirmity in the order of the learned CIT(A) Nature of income - income arising from “the investment portfolio” - Short Term Capital Gain OR Business Income - Held that:- In the present case no where the assessee has claimed that these transactions are delivery based.Only the aspect that assessee can maintain an investment and trading portfolio. CIT(A) has totally erred in not examining the facts of the case in the entirety as to whether they were in accordance with the facts operating in the aforesaid decision of the Hon’ble Bombay High Court. Moreover learned CIT(A) has not given any finding as to whether the transaction in the present case are delivery based on not. Furthermore the observation of the AO that assessee has obtained huge amount of loan to make these investments has also not been considered by the learned CIT(A). CIT(A)is directed to consider the issue afresh and give proper finding as to whether the issue can be said to be decided in favour of the assessee on the basis of the ratio emanating from the Hon’ble Bombay High Court decision in the case of Gopal Purohit (2009 (2) TMI 233 - ITAT BOMBAY-G) - Decided in favour of revenue for statistical purposes.
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