Where shares are held as stock-in-trade no part of interest on borrowed funds can be disallowed u/s 14A as incurred in relation to Dividend income

Yatish Trading Co.P ltd. Vs ACIT (ITAT Mumbai), ITA No. 456 /Mum/2009, (Assessment Year: 2004 -05)

Summary of Findings:-

In the case of a trader where shares are held as stock-in-trade no part of interest on borrowed funds can be disallowed u/s 14A as incurred in relation to Dividend income. The interest on borrowed funds used for trading activity is an allowable expenditure under section 36(1)(iii) and the sa

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