Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI
Before: SHRI V.DURGA RAO & SHRI G. MANJUNATHA
order passed by the learned Commissioner of Income Tax (Appeals)-7, Chennai, dated 21.12.2018 and pertains to assessment year 2015-16.
The assessee has raised following grounds of appeal:-
1. The order dated 21.12.2018 of the Learned CIT(A)-7, Chennai in 2017-18 for the Assessment year is contrary to facts, opposed to law and untenable.
2. The Learned Commissioner of Income tax (Appeals) grossly erred in dismissing the appeal, without affording reasonable opportunity
3. The Ld CIT(A) erred in disallowing the expenses u/s 14A without verifying the Investment amounts for computation for disallowance as per Rule 8D of the Income tax Rules
3.1 The Ld CIT(A) AC ought to have applied section 14A only if there is common expenditure in relation to taxable income and exempt income.
3.2 Ld CIT(A) grossly erred in not establishing the nexus between the expenditure incurred and earning of dividend income and invoking section 14A.”
Brief facts of the case are that the assessee is a limited company engaged in the business of share trading in capital market filed its return of income for assessment year 2015-16 declaring total income of Rs.33,10,46,080/-. The assessment has been completed u/s.143(3) of the Income Tax Act, 1961 on 08.12.2017 and determined total income of at Rs.32,82,22,152/- by making additions towards speculation loss of Rs.53,13,112/- and disallowance u/s.14A of the Act at Rs.18,62,960/-. The assessee carried the matter in appeal before first appellate authority, but neither appeared nor filed any details. Therefore, learned CIT(A) disposed off appeal filed by the assessee and sustained additions made by the Assessing Officer towards speculation loss and disallowance u/s.14A of the Act. Aggrieved by the learned CIT(A) order, the assessee is in appeal before us.