https://www.taxtmi.com/caselaws?id=338425 Section 14A does not disallow expenditure relating to exempt dividend or interest earned incidentally on securities held by a bank as stock-in-trade where no proximate nexus exists between the expenditure and exempt income. Expenditure incurred to acquire and trade in such securities is directed towards the banking or trading business, while dividend and interest are incidental receipts rather than the purpose of the expenditure. The distinction between securities held as investments and as stock-in-trade is determinative. Rule 8D does not alter this position where the required connection with exempt income is absent. en-us Mon, 30 Jan 2017 00:00:00 +0530 Mon, 22 Jun 2026 14:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=338425 Section 14A does not disallow expenditure relating to exempt dividend or interest earned incidentally on securities held by a bank as stock-in-trade where no proximate nexus exists between the expenditure and exempt income. Expenditure incurred to acquire and trade in such securities is directed towards the banking or trading business, while dividend and interest are incidental receipts rather than the purpose of the expenditure. The distinction between securities held as investments and as stock-in-trade is determinative. Rule 8D does not alter this position where the required connection with exempt income is absent. Case-Laws Income Tax Mon, 30 Jan 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=338425