Provisions of section 14A doesn’t apply in banking companies were shares & securities are held as stock

Karur Vysya Bank Ltd Vs ACIT (ITAT Chennai) ITAT Chennai held that in case of banking companies were shares & securities are held as stock in trade, dividend income is considered as business income, and consequently, provisions of Sec.14A of the Act, cannot be applied. Facts- The assessee is a banking company filed return of income u/s. 139(1) of the Income Tax Act, 1961. The assessment has been completed u/s. 143(3) of the Act, where the AO has made proportionate disallowance towards expenditure incurred for exempt income. The assessee carried the matter in appeal before the First Appella...