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TMI Blog2017 (11) TMI 1804X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer on account of Mark to Market Loss claimed by the assessee in derivative transactions without appreciating the fact that the loss claimed on the basis of value of derivative as on 31st March is merely a notional loss and the actual loss or the profit in respect of such derivative transactions would get crystallized only at the time of settlement of such transaction." On the facts and circumstances of the case and in law, the CIT(A) erred in excluding the stock-in-trade from the Total Investment to be considered for the purposes of computing disallowance in accordance with Rule 8D, without appreciating that the investment in stock in trade is nothing but Business Investment and that Rule 8D does not exclude business investment from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder this issue the revenue has challenged the deletion of the addition of Rs. 5,20,75,140/- made by AO on account of Mark to Market Loss claimed by the assessee in derivative transaction. The Ld. Representative of the revenue has argued that the loss claimed on the basis of the value derivative as on 31st March is merely a notional loss and the actual loss or the profit of such derivative transaction would be crystallized only at the time of settlement of such transaction, therefore, the finding of the CIT(A) on this issue is wrong against law and facts and is liable to be set aside. However, on the other hand, the Ld. Representative of the assessee has strongly relied upon the finding of the CIT(A) in question. We have heard the argument ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon by the appellant: 1. Edelweiss Capital Limited Vs. ITO (ITA. No.5324/M/2007) 2. Edelweiss Securities Limited Vs. Addll. CIT(ITA 2193/M/2009) 3. DCIT Vs. Edelweiss Securities Limited(ITA 7792/M/2012) 4. DCIT Vs. ECL Finance Limited (ITA 7656/M/2011) 5. DCIT Vs. Kotak Mahindra Investment Limited(ITA 1502/M/2012 6. Shri Ramesh Kumar Damani Vs. Addll. CIT (ITA 809/M/2009) 7. M/s Ekansha Enterprises P. Ltd. Vs. DCIT (ITA 809/M/2012) 8. ACIT Vs. Suryakant D. Nissar (ITA 2750/M/2010) 9. DCIT Vs. Edelweiss Securities Limited (ITA 5939/M/2011) In view of the direct decisions on the issue from jurisdictional ITAT the disallowance of Rs. 5,20,75,140/- made on this account is deleted. These grounds of appeal are allowed." 6. O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant company is mainly engaged in the business of share trading activity. During the year under consideration, the appellants have earned exempt income of Rs. 36,61416/- in the form of dividend on shares/ME/debentures held as stock in trade and claimed the same to be exempt under section 10(34). This fact is admitted by the assessing officer at para 54 of his order. He has rejected contention of the appellant that dividend on shares etc., held as stock in trade cannot be subjected to disallowance u/s 14A and has ignored the various decisions of jurisdictional courts on the matter. 5.3.3 I find that the Hon'ble ITAT, Mumbai, in the case of Devkant Synthetics (India) Pvt Ltd V/s ITO-3(1)(2) in ITA No. 2663, 2664 and 2665 of 2015 dated 28 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dvantages Securities Ltd. ITA 1131/13 and in the case of HDFC Bank Ltd. Vs. DCIT 1753 of 2016. In the said circumstances, the provision of Section 14A r.w. Rule 8D of the Act was not applicable upon the investment held as stock and trade. The assessee himself assessed the expenses to the earned the exempt income 1,98,491/-. The CIT(A) has restricted the expenses to the extent only. In the said circumstances, we are of the view that the CIT(A) has passed the order judiciously and correctly which is not required to interfere with at this appellate stage. Accordingly, this issue is being decided in favour of the assessee against the revenue. ISSUE NO. 3 & 4:- 9. Issue no. 3 & 4 are generally in nature which nowhere required any adjudication. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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