The common issue involved in these two appeals are as to whether the revenue authorities were justified in making a disallowance of a sum of Rs.1,59,63,655 and Rs.1,38,75,714 by invoking the provisions of Sec.40A(3) of the Income Tax Act, 1961 (Act) in AY 2013-14 & 2014-15 respectively.
Section 40A(3) of the Income-tax Act, 1961—Business disallowance— Since, the issue raised by the Assessee with regard to borrowed funds not having been used for speculative business and the fact that there was income from speculative business and therefore even otherwise the deduction should have been allowed while computing income from speculation business, has not been considered by CIT(A) and since facts need to be examined in this regard, the matter should be remanded to the AO- - KRISHNASA BHUTE V/s ITO - [2019] 179 ITD 824 (ITAT-BANGALORE)
The common issue involved in these two appeals are as to whether the revenue authorities were justified in making a disallowance of a sum of Rs.1,59,63,655 and Rs.1,38,75,714 by invoking the provisions of Sec.40A(3) of the Income Tax Act, 1961 (Act) in AY 2013-14 & 2014-15 respectively.
Section 40A(3) of the Income-tax Act, 1961—Business disallowance— Since, the issue raised by the Assessee with regard to borrowed funds not having been used for speculative business and the fact that there was income from speculative business and therefore even otherwise the deduction should have been allowed while computing income from speculation business, has not been considered by CIT(A) and since facts need to be examined in this regard, the matter should be remanded to the AO- - KRISHNASA BHUTE V/s ITO - [2019] 179 ITD 824 (ITAT-BANGALORE)