Max opp Investment Ltd (SC)- Section 14A – An Analysis

Supreme Court (SC) Ruling – Whether the expenditure incurred (including interest paid on funds borrowed), while purchasing the shares/ stocks of a company for the purpose of gaining control over the investee company or as ‘stock-in-trade’ (i.e. as a business activity) and not as investment to earn dividends, can be treated as expenditure ‘in relation to income i.e. dividend income, which does not form part of the total income? Max opp Investment Ltd. vs. CIT, New Delhi with Others [Civil Appeal Nos. 104-109 of 2015]/ [2018] 91 taxmann.com 154 (SC) Facts of the case: Ma...