Sec 14A r.w. rule 8D not applies if assessee has kept shares as stock in trade

Relevant Extract of the Judgment Mr. Khaitan, learned senior Advocate appeared on behalf of the assessee and demonstrated from the assessment order that the Assessing Officer had treated the claim of long term capital gain as business income. The assessee did not object to that. In such situation there could be no application of Section 14A for disallowance of expenditure incurred to earn exempt income. He submitted the assessee is engaged in the business of share trading. Money was borrowed for the purpose of purchasing shares. The expenditure of interest on borrowings was relatable to the sh...