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TMI Blog2020 (4) TMI 906X X X X Extracts X X X X X X X X Extracts X X X X ..... e in brokers accounts and party wise gross receipts - HELD THAT:- CIT(A) deleted the said addition made by the AO observing that the said difference in party wise detail and brokers account is due to Margin Money and STT. In view of the findings of the CIT(A) with regard to the aforesaid addition, we find no merit in the grounds of appeal no. 2 raised by the Revenue and the same is dismissed. Non deduction of TDS on professional charges - HELD THAT:- CIT(A) noted that the assessee had not claimed the said professional expenses in its profit loss account and had capitalized the same under work in progress i.e. Building under Construction in fixed assets schedule. The CIT(A) thus deleted the addition. We find merit in theorder of the CIT(A) and uphold that the provisions of section 40(a)(ia) of the Act are attracted only if expenses are claimed in the profit loss account and not when the same are capitalized. Disallowance u/s 14A r.w.r. 8D - HELD THAT:- CIT(A) noted that the assessee had made investment only in share application money as on 31.03.2011 and hence there was no merit in invoking the provisions of section 14A of the Act. We uphold the order of CIT(A) i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dded the difference of 10,20,64,174/- between the deposits in the bank and the receipts shown by the assessee and further added difference of Rs. 23,02,705/- i.e. the difference between the broker s statement and the receipt shown in the books of accounts of the assessee. The AO on the basis of certain information was of the view that the assessee was not trading in shares but was only an entry operator hence addition of Rs. 10,43,66,879/- was made. 5. The next addition made in the hands of the assessee was on account of deemed dividend under .section 2(22)(e) of the Act at Rs. 29,27,178/-. The assessee had claimed ROC expenses of Rs.2,50,91/- for enhancing its authorized share capital. However, the same was disallowed. The AO also disallowed the deduction claimed on account of professional fee paid of Rs. 2,76,200/- for non deduction of tax at source. Another addition made in the hands of the assessee was the disallowance under section 14A of the Act at Rs. 6,25,265/-. 6. Before the CIT(A), the assessee furnished written submissions and the CIT(A) dealt with each of the issue. The first issue which was decided was the addition made after rejection of books of accounts. The C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own in bank statement on account oj Cheque dishonored on 06.07.2010 Difference of amount appeared in bank account on account of cash deposit, contra entry, loan received back, loans advances given duly accounted into books of accounts 58,662,850 Zaljog Commodities Trade Pvt. Ltd. 5,00,000 Rs 5,00,000/- paid as Margin money on 26.06.2010 by the appellant which is received back and not considered as part of revenue or expense R. K. Commodities Services Pvt. Ltd. 189,994,543 189,494,543 500,000 Rs. 500,000 paid as Margin money on 05.07.2010 by the appellant which is received back and not considered as part of revenue or expense Kumar Share Brokers Ltd. 14.000,000 13,593,195 5,00,000 Rs 500,000 paid as Margin money on 12.07.2010 by the appellant which is received back and not considered as part of revenue or expense (89,246) Rs 89,246 Debit clo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant, addition made by AO is liable to be deleted. 9. The learned DR for the Revenue has failed to controvert the findings of CIT(A) in this regard. We find no merit in the issue raised vide ground of appeal no. 1. Before parting, we may also point out that no additional evidence was produced before the CIT(A) and hence there is no merit in the additional ground of appeal raised by the Revenue. 10. Now coming to next issue i.e. against addition of Rs. 23,02,705/- made on account of alleged difference in brokers accounts and party wise gross receipts submitted by the appellant. The assessee duly explained the said difference and the tabulated details read as under:- Nam e o f Party As per Accounts of Broker submitted by Assessee As per Party - wise detail of Gross receipts (net off toss before deducting STT) Difference income not disclosed Explanation/Remarks R.K. Commodities Services Pvt. Ltd 19,00,94,585 (Correct Fig Rs. 19,01,50,957 gross receipts) 18,94,94,592 5,99,993 Actually Rs 6,56,365 6,56,365 = (5 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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