https://www.taxtmi.com/caselaws?id=177198 The Tribunal held that disallowance under section 14A is applicable to dividend income from shares held as stock-in-trade, even if exempt income was not earned. However, considering the shares were primarily held for trading purposes, the disallowance under Rule 8D(2)(ii) was scaled down to 5% of the calculated amount. Similarly, managerial/administrative expenses under Rule 8D(2)(iii) were reduced to 10%. This resulted in a partial allowance of the appeal, emphasizing the trading nature of the shares and limiting the disallowance under section 14A. en-us Wed, 27 Aug 2014 00:00:00 +0530 Tue, 05 Jan 2016 11:14:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=177198 The Tribunal held that disallowance under section 14A is applicable to dividend income from shares held as stock-in-trade, even if exempt income was not earned. However, considering the shares were primarily held for trading purposes, the disallowance under Rule 8D(2)(ii) was scaled down to 5% of the calculated amount. Similarly, managerial/administrative expenses under Rule 8D(2)(iii) were reduced to 10%. This resulted in a partial allowance of the appeal, emphasizing the trading nature of the shares and limiting the disallowance under section 14A. Case-Laws Income Tax Wed, 27 Aug 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=177198