2014 (4) TMI 384

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..... f average investment and assets - the benefit of security transaction tax issue cannot be given unless the assessee produces relevant evidence - Any relief without bringing evidence on record and due verification thereof, also becomes illegal and erroneous - The assessee could not demonstrate any average investment and as mandated by Rule 8D in specific terms – besides, the security transaction ta .....

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..... es as per Rule 8D of the Income Tax Rules. b) To disallow the rebate of securities transaction tax as the assessee has not furnished the required evidence. 2. Ld. counsel for the assessee contends that the impugned assessment was framed u/s 143(3). During the assessment, ld. Assessing Officer called for requisite details about the suo moto disallowance of Rs.50,000/- made by the assessee u/s .....

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..... orm also, the ld. counsel for the assessee could not show it from the record. Ld. counsel relied on the judgment of Hon ble Supreme Court in the case of Malabar Industrial Co. Ltd. vs Commissioner of Income Tax 243 ITR 83 and Commissioner of Income Tax vs Arvind Jewellers 259 ITR 502 (Guj) for the proposition that when the Assessing Officer has inquired into the matter and taken a view, the same c .....

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..... ked out. In this situation, the only legal course left by the Assessing Officer was to give a working of Rule 8D and not resort to any estimated disallowance. In the absence of relevant details and statutory working, the view taken by the Assessing Officer being against the express provision of Rule 8D becomes patently erroneous. Apropos the security transaction tax issue also, the benefit cannot .....

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..... he material on record. We find merit in the working of ld. DR. Qua the queries raised by the Bench, counsel for the assessee could not demonstrate any average investment and as mandated by Rule 8D in specific terms. Besides, the security transaction tax issue also, the relief appears to have been given without there being any evidence on record which is not produced before us also despite specific .....

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