RAMAKANT SANATHAN BHATT, MUMBAI V. ITO 12(3)((4), MUMBAI

ITA 4143/MUM/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 92440 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 10 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2015
• Appeal Filed By: Assessee
• Bench Allotted: D
• Next Hearing Date: 15-04-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 13-06-2012
• Court: TRIBUNAL
• Department Lawyers: LOVE KUMAR
• Keywords: Business income; Earning of tax free income

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D , BENCH MUMBAI . , . . , BEFORE SHRI D.MANMOHAN, VICE PRESIDENT & SHRI R.C.SHARMA , A M ./ ITA NO. 4143 /MUM/20 12 ( / ASSESSMENT YEAR :200 8 - 09 ) MR. RAMAKANT SANATHAN BHAT, INTERTRADE EXIM, 101, GREEN STREET, FORT, MUMBAI - 400023 VS. ITO WARD - 12(3)(4), MUMBAI ./ ./ PAN/GIR NO. : A A CPB 4158 G ( / AP PELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : NONE /REVENUE BY : MR. LOVE KUMAR / DATE OF HEARING : 1 5 TH APRIL, 2015 / DATE OF PRONOUNCEMENT : 24 TH A PRIL, 2015 / O R D E R PER R.C.SHARMA ( A .M.) : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 23, MUMBAI DATED 15 - 3 - 2012 FOR THE ASSESSMENT YEAR 2008 - 09 , IN THE MATTER OF ORDER PASSED U/S.143(3) OF THE I.T.ACT. 2. IN THIS APPEAL THE AS SESSEE IS AGGRIEVED FOR DISALLOWANCE MADE U/S.14A R.W.R.8D. THE ASSESSEE IS ALSO AGGRIEVED FOR TREATING THE CAPITAL GAIN AS BUSINESS PROFIT. 3. NOTICE WAS SERVED ON THE ASSESSEE FIXING THE DATE OF HEARING ON 10 - 2 - 2014. LD. AR OF THE ASSESSEE APPEARED AND SOUGHT FOR ADJOURNMENT, ACCORDINGLY THE CASE WAS ADJOURNED AT ASSESSEES REQUEST TO 5 - 6 - 2014. ON THAT DATE THE BENCH DID NOT FUNCTION AND THE CASE WAS LISTED FOR HEARING ON 15 - 4 - 2015. HOWEVER, NOBODY APPEARED ON BEHALF OF THE IT A NO . 4143/12 2 ASSESSEE, NOR ANY ADJOURNMENT APPLICATION WAS MOVED ON BEHALF OF ASSESSEE, THEREFORE, THE BENCH DEEMED IT FIT TO DECIDE THE APPEAL AFTER HEARING THE LD. DR AND CONSIDERING THE MATERIAL PLACED ON RECORD. ACCORDINGLY, APPEAL WAS HEARD EX - PARTE QUA ASSESSEE. W E HAVE HEARD LD. DR AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW, WHEREIN AFTER APPLYING RULE 8D THE AO HAS DISALLOWED EXPENDITURE ATTRIBUTABLE TO EARN ING OF EXEMPT INCOME. SINCE THE ASSESSMENT YEAR UNDER CONSIDERATION IS 2008 - 09, THEREFORE RULE 8D WAS APPLICABLE. CONSIDERING THE FREQUENCY OF SHARE TRANSACTION THE AO HELD THAT ASSESSEE IS ENGAGED IN BUSINESS OF SHARE TRADING, THEREFORE, PROFIT ARISING OF SUCH SHARE TRADING WAS WRONGLY OFFERED AS CAPITAL GAINS. AFTER RECORDING FINDING AT PARA 5, THE AO TREATED THE CAPITAL GAIN AS BUSINESS INCOME. 4. BY THE IMPUGNED ORDER, THE CIT(A) CONFIRMED THE FINDING OF AO AFTER OBSERVING AT PARA 3 & 4. 5. NOTHING WAS BROUGHT TO OUR NOTICE TO DISLODGE THE FINDINGS OF THE LOWER AUTHORITIES IN THEIR RESPECTIVE ORDERS. ACCORDINGLY, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF LOWER AUTHORITIES FOR DISALLOWING THE CLAIM OF EXPENDITURE INCURRED FOR EARNING EXEMPT INCOME AS WELL AS TREATMENT OF CAPITAL GAINS AS BUSINESS IN C OME. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PRONOUN CED IN THE OPEN COURT ON THIS 24/04 / 201 5 . 24/04 /201 5 SD/ - SD/ - ( . ) ( D.MANMOHAN ) ( . . ) ( R.C.SHARMA ) / VICE PRESIDENT / ACCOUNTANT MEMBER MUMBAI ; DATED 24/04 /201 5 . . /PKM , . / PS IT A NO . 4143/12 3 / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. //TRUE COPY//