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TMI Blog2015 (10) TMI 1062X X X X Extracts X X X X X X X X Extracts X X X X ..... eld sale proceeds of bonus shares which had been issued in respect of shares which formed part of the assessees' stock-in-trade of the share dealing business are liable to inclusion in the assessees' total incomes for the respective years as profits of the share dealing business. Under the circumstances, we find no reason not to adopt the findings by the Tribunal, as well as inferences by the authorities below in the matter. - Decided against the assessee Disallowance under section 14A read with rule 8D - Held that:- In principle a disallowance under section 14A read with rule 8D would arise, of course having regard to the facts of the case, and towards which the provisions of section 14A(2) and 14A(3), though procedural in nature, would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dispute in the matter inasmuch as the Assessing Officer has allowed the assessee's claim in principle, which becomes all the more maintainable in view of the Revenue's stand of the assessee's income being assessable as business income having been confirmed by us (refer para 3 of this order). The assessee's grievance, which though cannot be discounted, is sans any material on record. The same having also been raised before the first appellate authority, which has not disposed of the same, we only consider it fit and proper to restore the matter back to his file to decide the issue of non- grant of the rebate under section 88E, where so, consistent with the law and the facts of the case after hearing both sides. - Decided in favour of assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11 dated September 5, 2012), placing a copy of the said order on record. We observe parity of facts, with the assessee dealing in shares on futures and options basis as well as by way of share trading. The matter has been discussed at length by both authorities below for the current year, as also stands duly considered by the Tribunal in his own case for the preceding year, referring to the decisions by the higher courts, as by the apex court in CIT v. Madan Gopal Radhey Lal [1969] 73 ITR 652 (SC) as well as the Circular No. 4 of 2007 dated June 15, 2007 ([2007] 293 ITR (St.) 384 ) by the Central Board of Direct Taxes. Under the circumstances, we find no reason not to adopt the findings by the Tribunal, as well as inferences by the authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 ITR 519 (SC) and, further, by the Tribunal in the context of section 14A in Cheminvest Ltd. v. ITO [2009] 317 ITR (AT) 86 (Delhi) [SB]. Reference in this regard be also made to the decision in the case of Asst. CIT v. Citicorp Finance (India) Ltd. [2008] 300 ITR (AT) 398 (Mum). 5.2. Coming to the facts of the case, the application of section 14A read with rule 8D, where the assets yielding tax-exempt income form part of the assessee's trade assets, has been a subject matter of consideration by the Tribunal in many cases, with conflicting decisions. The matter has attained stability, i.e., at end of the Tribunal, by the Third Member decision in the case of Deputy CIT v. D. H. Securities P. Ltd. [2014] 31 ITR (Trib) 381 (Mum) (in I. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT [2006] 284 ITR 323 (SC). The assessee has before us placed reliance on the decision by the jurisdictional High Court in the case of CIT v. Pruthvi Brokers and Shareholders P. Ltd. [2012] 349 ITR 336 (Bom) (copy on record) holding, after considering the said decision by the apex court as well as the earlier decisions by it in the matter, that the same shall not preclude the Tribunal in law to entertain a claim for deduction for the first time. 7. We have heard the parties and perused the material on record. The hon'ble High Court has clarified on the powers of the Tribunal, so that the non-raising of a claim by the assessee per its return of income does not constrain an appellate authority from admitting the same where the circumst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the first appellate authority, whose order is also silent in the matter, even as a specific ground (ground No. 4) in its respect stood raised before him. 9. We have heard the parties, and perused the material on record. The language of the section 88E is clear and unambiguous. However, we do not observe any dispute in the matter inasmuch as the Assessing Officer has allowed the assessee's claim in principle, which becomes all the more maintainable in view of the Revenue's stand of the assessee's income being assessable as business income having been confirmed by us (refer para 3 of this order). The assessee's grievance, which though cannot be discounted, is sans any material on record. The same having also been raise ..... X X X X Extracts X X X X X X X X Extracts X X X X
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