made investment in Mutual Funds. thus, it is proved that the assessee
has diverted borrowed funds for making investment in Mutual Funds.
Accordingly ... then invested in mutual funds, again a nexus is
established between the borrowed funds and the investments in mutual
funds. In our view, this particular
incurred by the assessee on purchase and sale of units of Mutual Funds is allowable or not?
2. Whether the provisions of section ... sold on 21-12-2000 units of Sun F&C Mutual Fund. The learned CIT(A) has enumerated the assessees claim of loss
under
section 14A of the Act to the cost of the mutual fund units.
2. The Appellant humbly prays that the AO be directed ... disallowance made under 14A to the cost of mutual fund
units.
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Without Prejudice to the claim of the Appellant that
Upfornt Fee and Payment
compensation for not carrying out the business of Management of
Mutual Fund Scheme.
3(b) The Ld. CIT(A) failed to appreciate that the compensation ... learned
ACIT that the right to manage the schemes of Mutual Fund is a
capital asset.
c. The learned CIT(A) erred in not appreciating
assessee has been buying and selling shares and units
of mutual funds throughout the year continuously and regularly
through an organized, full time ... funds are in the nature of investments only for
the following reasons:
"(a) investments are made with own funds and not with
borrowed funds
incurred by the assessee on purchase and sale of units of Mutual Funds is allowable or not?
2. Whether the provisions of Section ... sold on 21.12.2000 units of Sun F&C Mutual Fund. The learned CIT(A) has enumerated the assessee's claim of loss
borrowed any money for buying shares or units of Mutual Funds. It was also
4
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ITA No.971/Kol/2012 ... submitted that the dividend in respect of units of mutual funds is usually reinvested in
the respective schemes without being actually received by the assessee
expenditure by way
of payment of interest for making investment in mutual fund. This is substantiated
from the accounts of the assessee in as much ... business. There is no relationship of
these deposits with investment in mutual funds. It is submitted that there is no
relationship of these deposits with
tune of Rs. 12,23,642/- on redemption of HDFC
Mutual funds which were not shown in return of income filed by the assessee.
Penalty ... reply,
the assessee submitted as under:-
"Redemption of Mutual Funds: Since I had not maintained books of
accounts, the capital gains on redemption
sale of units of debt-oriented mutual funds are taxable under the head 'Business income', as against the appellant's contention that ... that during the present year, the assessee has sold units of mutual fund totalling Rs. 48,68,72,010 and out of this
