https://www.taxtmi.com/caselaws?id=326936 Shares reflected in the balance sheet as investments, valued at cost and acquired and sold on a delivery basis, were treated as capital assets because the holding pattern, earlier treatment, and surrounding facts showed investment intent rather than a share-trading business. On that basis, the loss on sale was capital in nature and not business or speculative loss under the Explanation to section 73. On section 14A read with Rule 8D, disallowance was confined to the actual expenditure debited in the accounts because the assessee had sufficient own funds and no proximate expenditure for exempt dividend income was established beyond the amount already disallowed. The Revenue's challenge failed on both issues. en-us Wed, 16 Mar 2016 00:00:00 +0530 Thu, 28 Apr 2016 10:07:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=326936 Shares reflected in the balance sheet as investments, valued at cost and acquired and sold on a delivery basis, were treated as capital assets because the holding pattern, earlier treatment, and surrounding facts showed investment intent rather than a share-trading business. On that basis, the loss on sale was capital in nature and not business or speculative loss under the Explanation to section 73. On section 14A read with Rule 8D, disallowance was confined to the actual expenditure debited in the accounts because the assessee had sufficient own funds and no proximate expenditure for exempt dividend income was established beyond the amount already disallowed. The Revenue's challenge failed on both issues. Case-Laws Income Tax Wed, 16 Mar 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=326936