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TMI Blog2018 (5) TMI 956X X X X Extracts X X X X X X X X Extracts X X X X ..... irmity in the order of Ld. CIT(A). Addition u/s 14A - Held that:- It was not possible to make any income without expenses thereby ignoring the facts that the expenses claimed by the assessee in the P & L account are only to the extent of ₹ 2,24,354/-. Therefore, the arguments of the Ld. A.R. that disallowance cannot exceed actual expenses claimed by the assessee appear to be correct. Keeping in view the nature of business and facts of the case, we are of the view that disallowance of expenses attributable to earning of exempt income has to be based upon the quantum of expenses incurred by the assessee. We, therefore, deem it fit and reasonable to direct a disallowance @ 20% of total expenses i.e. ₹ 2,24,354/- as expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellate proceedings, the Ld. CIT(A) deleted the disallowance by observing that even in the past, Revenue has accepted the assessee as investor and therefore came to the conclusion that assessee is an investor and not a trader. Ld. CIT(A) further relied on the order of his predecessor in the case of Shri Dipak K. Shah the husband of the assessee in which Ld. CIT(A)-39 for A.Y. 2010-11 who decided the issue under identical facts and circumstances in favour holding the assessee to be investor and not as trader in shares. 5. The Ld. D.R. strongly submitted before the Bench that in the instant case the assessee has shown substantial income by way of surplus on sale and purchase of shares as long term as well as short term capital where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2004-05 to A.Y. 2015-16 are tabulated. The Ld. A.R. further submitted that the issue is squarely covered in favour of the assessee by the decision of the co-ordinate bench of the Tribunal in the case of the husband of the assessee wherein the Tribunal, in ITA No.3661/M/2015 for A.Y. 2010-11 vide order dated 12.04.17, has decided the issue under identical facts in favour of the assessee by dismissing the appeal of the Revenue. The Ld. A.R. submitted that following the decision of the co-ordinate bench of the Tribunal the appeal of the Revenue should be dismissed. 7. We have heard the rival submissions of both the parties and perused the material on record including the impugned order. The undisputed facts are that the assessee is mainta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in our opinion, the decision of the CIT (A) on this issue is fair and reasonable and does not call for any interference. Accordingly, grounds raised by Revenue with regard to both the STCG and LTCG are dismissed. 20. In the result, appeal of the Revenue is dismissed. 8. After perusing the above order of the co-ordinate bench of the Tribunal vis- -vis facts of the assessee s case, we find that the facts in the said case are same as involved in the present case before us. Therefore, following the above order of the Tribunal we affirm the order of Ld. CIT(A) by dismissing the appeal of the revenue. 9. In the result appeal of the Revenue is dismissed. CO No.51/M/2018 10. The various issues raised by the assessee are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in brief are that the AO, during the course of assessment proceedings, noted that assessee has not attributed and apportioned any expenses towards the earning of exempt income while observing that no direct expenses and interest expenses were claimed by the assessee in the P L account. The Ld. CIT(A) also upheld the decision of disallowance of ₹ 6,29,793/- as made by the AO by invoking section 14A read with rule 8D(iii) by observing that the rules were rightly invoked by the AO as how can there be any income without expenses. The Ld. A.R. vehemently submitted before us that during the year the assessee has not incurred any expenditure by referring to the P L account which is filed at page No.42 of the paper book. The expenses clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Ld. CIT(A) also justifying the invocation of provision of section 14A read with rule 8D(iii) on the ground that it was not possible to make any income without expenses thereby ignoring the facts that the expenses claimed by the assessee in the P L account are only to the extent of ₹ 2,24,354/-. Therefore, the arguments of the Ld. A.R. that disallowance cannot exceed actual expenses claimed by the assessee appear to be correct. Moreover from the perusal of the order of co-ordinate bench of the Tribunal, we find that in the identical facts, the co-ordinate bench of the Tribunal has directed the disallowance @ 2% of the exempt income. But keeping in view the nature of business and facts of the case, we are of the view that disal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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