No disallowance U/s. 14A in respect of dividend earned on shares held as stock

Nice Bombay Transport (P) Ltd Vs ACIT (ITAT Delhi) Hon’ble High Court of Punjab and Haryana arrived at a correct conclusion by setting aside the disallowance under section 14 A of the Act in respect of the dividend earned on the shares held as stock in trade, because such shares were held during the business activity of the assessee and it is only by a quirk of fate that when the investee company declared dividend, those shares were held by the assessee, though the assessee has to ultimately trade those shares by selling them to earn profits. Hon’ble Apex Court in the case of Maxopp invest...