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TMI Blog2022 (6) TMI 650X X X X Extracts X X X X X X X X Extracts X X X X ..... question of law arises on the said two questions. Disallowance u/s 14A r.w.r.8D - ITAT upholding the order of the CIT(Appeals) VIII, Kolkata in holding that the entire disallowance made by the Assessing Officer Rule 8D(2)(iii) of the Income Tax Act, 1961 is not applicable on this issue - HELD THAT:- Reading of the above finding of the tribunal which had approved the finding of the Commissioner of Income Tax (Appeals), we find that the tribunal has rightly taken note of the factual position and rejected the appeal filed by the revenue. That apart, the law under issue has been well-settled and under what circumstances the provision available under Rule 8D(2) can be made applicable and mechanical exercise of such power was held to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is more in the business of money lending from where the interest was earned and further the income earned from sources other than share transactions and also in treating the loss so incurred by the assessee-company as non-Speculation Loss and Explanation to provision of Section 73 of the Income Tax Act, 1961 is not applicable in this case? (c) Whether on the facts and circumstances of the case the Learned Income Tax Appellate Tribunal, B Bench Kolkata erred in law in upholding the order of the CIT(Appeals) VIII, Kolkata in holding that the entire disallowance made by the Assessing Officer Rule 8D(2)(iii) of the Income Tax Act, 1961 is not applicable on this issue without assigning any findings as regards the inapplicability of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal gains (short term) .From the A/R s submission noted above, it is amply clear that the granting of loans and advances is not the principal business of the assessee, rather the assessee had resorted to occasionally granting such loans and advances in order to maintain its corporate status as NBFC, thereby supplementing the investment activity. From the accounts, it is evident that the assessee is actively engaged in capital market transactions, viz. Share trading and derivative transactions. All these facts coupled with discussions made in para 2.1 and 2.2 above clearly establish that the assessee s case is not covered by any of the exceptions mentioned in Explanation mentioned below section 73. That is (a) the gross total income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nment Advocate is directed to serve copy of the Stay Application and Memorandum of Appeal along with a copy of this order on the Respondent by speed post by 24.12.2014 to enable it to appear and make its submissions on the adjourned date. List this matter appear under the heading For Order on 15.1.2014 when the appellant shall file Affidavit-of-Service. From the above order it is seen that only in respect of third question which has been suggested by the revenue, notice was directed to be issued to the respondent/assessee. We have considered the submissions on either side and perused the findings rendered by the learned tribunal on the third question. The tribunal has recorded the following factual finding with regard to the said q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e facts, we have no alternative except to confirm the order of CIT(A) and this issue of Revenue s appeal is dismissed . Reading of the above finding of the tribunal which had approved the finding of the Commissioner of Income Tax (Appeals), we find that the tribunal has rightly taken note of the factual position and rejected the appeal filed by the revenue. That apart, the law under issue has been well-settled and under what circumstances the provision available under Rule 8D(2) can be made applicable and mechanical exercise of such power was held to be bad in law. Therefore, we find that no question of law much less substantial question of law arises for consideration on the third issue as well. Hence, the appeal is dismissed. Wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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