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TMI Blog2018 (3) TMI 1409X X X X Extracts X X X X X X X X Extracts X X X X ..... ing regards to the submissions made by the assesse. 2. That the CIT (Appeals)/ AO has erred on facts and under the law in taxing the income from long term listed equities of Rs. 25,13,359 as business income, without going into the facts of the relevant year and ignoring the CBDT's circular. 3. That the CIT (Appeals)/AO has erred on facts and in law in increasing the disallowance u/s 14A by Rs. 43,75,447, without factoring the assesse himself had disallowed Rs. 767286. 4. That the CIT (Appeals)/ AO has erred on facts and in law in disallowing the business expenses of Rs. 15,68,000 on adhoc basis without giving reasons as to how the figure of Rs. 15,68,000 is worked out. 5. That the above grounds of appeal are independent and with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where investment made in equities are sold. The assessee treated long term capital gain from sale of equities held for more than 12 months exempt u/s 10 (38) of the Act. The Assessing Officer treated it as business income. Now, the above issue is squarely covered in favour of the assessee by Circular No. 6 dated 29.02.2016 issued by CBDT. The above circular speaks that if shares are held for more than 12 months, if assessee shows it as LTCG, same should be accepted. 7. In view of above facts we are of the opinion that when the assessee himself has treated the income arising from sale of securities held for more than 12 months as capital gains, there is no reason to dispute it by Assessing Officer. 8. In view of this ground No. 2 of the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated on merits his submission before the CIT (A). 11. The Ld. DR vehemently supported the order of the CIT (A) and the Assessing Officer. 12. We have carefully considered the rival contentions as well as perused the orders of the lower authorities. The assessee has earned dividend income of Rs. 26,43,57,693/- which is exempt u/s 10 (34) of the Act. While filling the return of income assessee on its own disallowed Rs. 767286/- u/s 14 A. The assessee has given a detailed computation for the same. 13. The Ld. Assessing Officer did not say that how the claim of the assessee is not correct. Assessing Officer has not recorded satisfaction that how the claim of the assessee is incorrect. He also did not comment upon the argument of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s incurred expenditure of Rs. 1399300/- and Rs. 175000/- out of travelling expenses were disallowed as assessee could not produce the bills and vouchers for these expenses before the lower authorities. No such details was also produced before us. Whether an expenditure is incurred wholly and exclusively for the purposes of the business or not can be determined only if the necessary bills and vouchers for those expenditure can be verified. As assessee has failed to produce this details before the lower authorities we find no infirmity in the order of CIT (A) in confirming the above disallowance. 18. In the result ground No. 4 of the appeal is dismissed. 19. In the result appeal of the assessee is partly allowed. 20. Order pronounced in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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