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TMI Blog2015 (11) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness is covered by Tribunal’s decision in assessee’s own case for the immediately preceding assessment year. Explanation to Section 73(1) is not applicable and, therefore, loss from business of purchase and sale of shares on delivery basis cannot be considered as speculation loss and only the loss from commodity transaction business has to be considered as speculation loss. - I.T.A. No.: 2386/Ahd/11 - - - Dated:- 29-9-2015 - Pramod Kumar AM and S S Godara JM For The Appellant : S N Diveta For The Respondent : Sonia Kumar ORDER Per Pramod Kumar: 1. By way of this appeal, the assessee appellant has challenged correctness of the order dated 18th August 2011 passed by the learned CIT(A) in the matter of assessment under section 143(3) of the Income Tax Act, 1961, for the assessment year 2008-09. 2. Grievance of the assessee, in short, is that the learned CIT(A) has grievously erred in law and on facts in confirming the following additions/ disallowances:- (a) disallowance under section 14A - ₹ 42,97,650; (b) allocation of STT- ₹ 10,12,199;and (c) allocation of common expenses- ₹ 27,57,751 . We will take up these three issues one by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounts of the assessee of a previous year, is not satisfied with- (a) the correctness of the claim of expenditure made by the assessee; or (b) the claim made by the assessee that no expenditure has been incurred, in relation to income which does not form part of the total income under the Act for such previous year, he shall determine the amount of expenditure in relation to such income in accordance with the provisions of sub-rule (2). (2) The expenditure in relation to income which does not form part of the total income shall be the aggregate of following amounts, namely:- (i) the amount of expenditure directly relating to income which does not form part of total income; (ii) in a case where the assessee has incurred expenditure by way of interest during the previous year which is not directly attributable to any particular income or receipt, an amount computed in accordance with the following formula, namely:- A x B C Where A = amount of expenditure by way of interest other than the amount of interest included in clause (i) incurred during the previous year; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee is aggrieved of allocation of STT amounting to ₹ 10,12,199. However, with the consent of the parties, this issue is remitted to the file of the Assessing Officer for fresh adjudication in the light of the principles laid down by Hon ble Bombay High Court in the case of CIT Vs Manish D Innai [370 ITR 679 (Bom)] and in the light of such other binding judicial precedents as may be available at that point of time. As we do so, we make it clear that we have refrained from adjudication on merits for the reason that the correctness of the factual elements embedded in learned counsel s arguments cannot be ascertained from the material on record before us. 7. Coming to the third and last issue in appeal before us. i.e. allocation of common expenses between speculation and non-peculation business, amounting to ₹ 27,57,751, we find that this issue is covered by Tribunal s decision dated 18th May 2013 assessee s own case for the immediately preceding assessment year. In the said decision, the coordinate bench has, inter alia, observed as follows: 9. We have considered the rival submissions, perused the material on record and have gone through the order of authoritie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchase se of shares Rs.17,37,34,136 Less DMAT charges Rs.95,496 Less: Service Tax ₹ 2,361 Less Share trading Exp. Rs.1,70,958 Less expenses allocated ₹ 13,08,145 ₹ 17,53,11,096 Net loss: ₹ 15,66,518 B Profit Loss on speculative Transaction in commodity: Net loss as per P L Account ₹ 21,40,013 Add: Allocation of expenses as above ₹ 20,655 Total Loss ₹ 21,60,668 C Income/loss from derivative Transaction of shares: Income as credited in P L A/c Rs.50,43,318 Less : Future trading expenses Rs.16,22,141 Less: Expenses allocated as above ₹ 48,195 Total expenses Rs.16,70,336 Net income Rs.33,72,982 I.T.A.No. 1330 /Ahd/2011 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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