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TMI Blog2016 (4) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... by the learned CIT(A) could not be controverted by the learned DR. - Decided against revenue - ITA No.1508/PN/2014, ITA No.1509/PN/2014 - - - Dated:- 12-2-2016 - SHRI R.K. PANDA, AM AND SHRI VIKAS AWASTHY, JM For The Assessee : Shri C.H. Naniwadekar For The Revenue : Shri Hitendra Ninawe ORDER PER R.K. PANDA, AM : The above 3 appeals filed by the Revenue are directed against the separate orders dated 30-04-2014 of the CIT(A)-II, Pune relating to Assessment Year 2010-11. Since identical grounds have been taken by the revenue in the above appeals, therefore, these were heard together and are being disposed of by this common order. 2. First we take up ITA No.1508/PN/2014 as the lead case. In grounds of appeal N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activity and the resultant gain is assessable under the head capital gains. 5. Aggrieved with such order of the CIT(A) the revenue is in appeal before us. 6. After hearing both the sides, we find the issue stands decided in favour of the assessee and against the revenue by the decision of the Tribunal in assessee s own case for A.Y.2008-09 which has been followed by the CIT(A). We find following the above decision the Tribunal in the case of Smt. Sadhana Ashok Kumar Patni and other connected appeals vide ITA No.1835 to 1837/PN/2013 and ITA No.1847/PN/2013 order dated 24-09-2014 for A.Y. 2009-10 has held that activity of transaction in shares/mutual funds by engaging PMS was an investment activity and therefore the resultant gain was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the Rule 8D to arrive at the disallowance of ₹ 10,95,983/-. However, disallowance u/s.14A requires finding of incurring of expenditure and where it is found that for earning exempted income no expenditure has incurred or claimed, disallowance u/s.14A cannot stand. The expenditure on PMS has not been claimed by the assessee and, therefore, there does not remain any other expenditure other than this expenditure which is otherwise liable to be disallowed under Rule 8D of the I.T. Rules. 4.3 This has also been elaborately discussed in the appellate order passed by the undersigned vide order dated 06-09-2011 and upheld by the Hon ble ITAT Pune, vide combined order dated 27-09-2012 passed in the case of the appellant and other related ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earning tax free dividend income. In appeal the learned CIT(A) deleted such disallowance on the ground that disallowance u/s.14A requires finding of incurring of expenditure and where it is found that for earning exempted income no expenditure has been incurred or claimed disallowance u/s.14A cannot stand. He observed that the expenditure on PMS has not been claimed by the assessee and therefore there does not remain any other expenditure other than this expenditure which otherwise is liable to be disallowed under Rule8D of the Income Tax Rules. He accordingly directed the AO to delete the disallowance made at ₹ 5,57,396/-. Aggrieved with such order of the CIT(A) the revenue is in appeal before us. 10. After hearing both the sides, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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