https://www.taxtmi.com/caselaws?id=120373 The Tribunal held that Section 14A of the Income-tax Act, 1961, applies to dividend income earned by dealers in shares and securities, even if shares are held as stock-in-trade. It has an overriding effect over other sections and applies retrospectively. Both direct and indirect expenses related to exempt income must be disallowed. The intention and connection between expenditure and exempt income are key in applying Section 14A. The appeals were dismissed, and the matter was remitted to Assessing Officers to compute disallowance under Section 14A with Rule 8D. en-us Mon, 20 Oct 2008 00:00:00 +0530 Sat, 09 Dec 2023 19:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=120373 The Tribunal held that Section 14A of the Income-tax Act, 1961, applies to dividend income earned by dealers in shares and securities, even if shares are held as stock-in-trade. It has an overriding effect over other sections and applies retrospectively. Both direct and indirect expenses related to exempt income must be disallowed. The intention and connection between expenditure and exempt income are key in applying Section 14A. The appeals were dismissed, and the matter was remitted to Assessing Officers to compute disallowance under Section 14A with Rule 8D. Case-Laws Income Tax Mon, 20 Oct 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=120373