Disallowance U/s 14A/ Rule 8D on shares held as stock-in-trade

Issue and facts :– The brief facts, which are simple and undisputed, are that the assessee- company is a dealer and trader in shares and securities. Its various business segments are: Futures & Options (F&O) in shares and securities, shares transactions in the cash and derivative markets, speculation business therein (the above classifications may bear some overlapping). Shares in companies and Units of Mutual Funds (MFs) are also held by way of investments, on transfer of a part of which during the year the assessee has in fact disclosed long term capital gain (LTCG) at Rs 695.9...