Case Law Details
Brics Securities Ltd. Vs DCIT (ITAT Mumbai)
So far as disallowance u/s 14A read with Rule 8D is concerned, as per Ld. AR’s submissions, additional disallowance of Rs.45,606/- arises only on account of the fact that the assessee has excluded those investments which have yielded no exempt income during impugned AY or which were not capable of yielding any exempt income while arriving at the disallowance u/r 8D whereas Ld. AO has considered the Gross Investments whether or not the same has yielded any exempt income. We find that the action of the assessee is in line with the judgment of Delhi Tribunal (Special Bench) rendered in ACIT Vs. Vireet Investment (P.) Ltd. [82 com415] whereas it has been held that for the purpose of computing disallowance, only those investments which yielded exempt income during impugned AY were to be considered. Therefore, finding strength the argument of Ld. AR, the matter stand remitted back to the file of Ld. AO to verify the computations made by the assessee in this regard. The Ld. AO is directed to consider only those investments which have yielded exempt income during the year.
FULL TEXT OF THE ITAT JUDGMENT
1. Aforesaid appeals by assessee for Assessment Years [AY] 2010-11 & 2011-12 contest separate order of first appellate authority. Since common issues are involved, we dispose-off both the appeals by way of this common order for the sake of convenience and brevity. First we take up ITA. No. 1087/Mum/2014 for AY 2010-11 which contest the order of Ld. Commissioner of Income-Tax (Appeals)-8 [CIT(A)], Mumbai, Appeal No.CIT(A)-8/Cir.4/252/2012-13 dated 03/01/2014 by raising following grounds of appeal:-
1. On the facts and in the circumstances of the cae and in law, the learned Deputy Commissioner of Income tax (hereinafter referred as “DCIT”) has erred in disallowing depreciation on BSE Trading rights of Rs. 6,400,000 and the Honorable Commissioner of Income-Tax (Appeals) [hereinafter referred to as CIT(A)] has erred in confirming the action of the learned DCIT. The learned DCIT be directed to allow Depreciation claim on BSE Trading Rights amounting to Rs. 6,400,000 and reduce the total income accordingly.
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