S.14A does not apply to shares held as stock-in-trade

Karnataka High Court

CCI Ltd vs. JCIT, ITA NO. 359 of 2011, Date of Decision 28.02.2012

HC held that When no expenditure is incurred by the assessee in earning dividend income, notional expenditure cannot be disallowed u/s 14A. The assessee had not retained shares with the intention of earning dividend. The dividend income was incidental to the business of sale of shares, which remained unsold by the assessee. It cannot be said that the expenditure incurred in

Please become a Premium member. If you are already a Premium member, login here to access the full content.