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TMI Blog2012 (10) TMI 1272X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) The Ld. CIT(A)-II, Ludhiana, on facts as well as in law, has erred in deleting the disallowance of Rs.12,79,001/- made by the A.O. u/s 14A of the Income Tax Act, 1961. (b) The Ld. CIT(A)-II, Ludhiana has failed to appreciate that the Hon'ble Calcutta High Court in the case of M/s Dhnuka Sons Vs. CIT (244 CTR 511) has also held, in principle, that where the assessee carries on the business of Sale Purchase of share and accordingly earns dividend income as its business income, expenses attributable to earnings of such income are liable to be disallowed u/s 14A of I.T. Act. (c) The Ld. CIT(A)-II, Ludhiana has further failed to appreciate that the Management Fee and other charges are directly related to the earning of d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 46 5. The income from business declared by the assessee representing the profit accrued on PMS transactions is detailed as under: Particulars Amount Kotak Securities 1641331 ICICI Prudential 780748 STT {Not Claimed) 34858 Total 2456937 6. The total dividend income declared by the assessee was Rs.65,280/- and professional fee of Rs.5618/- was reduced from the PMS income. The assessee thus under the head income from business had declared only the profit from PMS transactions excluding the dividend income. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice and other investments. The Assessing Officer thus disallowed expenditure of Rs.12,79,001/- as income of the assessee. The CIT (Appeals) deleted the said addition made by the Assessing Officer. 8. The perusal of the facts reflect that the assessee had declared the profits from PMS investment as its income under the head income from business and also claimed expenditure relatable to such earning of the business income. The only expenditure claimed by the assessee vis- -vis its income from business was the management fee and NSDL charges paid to the portfolio management service. No deduction has been claimed on account of STT paid. The assessee has further not claimed any expenditure under any head against the said income from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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