https://www.taxtmi.com/caselaws?id=283371 For a banking assessee holding shares as stock-in-trade, disallowance under section 14A read with Rule 8D(iii) was held unsustainable because the holdings were part of business inventory rather than investments for exempt income, so the dividend-linked disallowance could not be applied on that footing. Expenditure described as penal in nature remained disallowed where no material was produced to rebut the finding of penal character. Leave encashment was treated as deductible on actual payment basis, not on a mere provision, so the claim was to be disallowed in the year of provisioning and allowed when paid. en-us Thu, 03 Jan 2019 00:00:00 +0530 Fri, 20 Sep 2019 12:47:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=283371 For a banking assessee holding shares as stock-in-trade, disallowance under section 14A read with Rule 8D(iii) was held unsustainable because the holdings were part of business inventory rather than investments for exempt income, so the dividend-linked disallowance could not be applied on that footing. Expenditure described as penal in nature remained disallowed where no material was produced to rebut the finding of penal character. Leave encashment was treated as deductible on actual payment basis, not on a mere provision, so the claim was to be disallowed in the year of provisioning and allowed when paid. Case-Laws Income Tax Thu, 03 Jan 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=283371