TaxTMI 
TaxTMI 
2013 (12) TMI 647
X X X X Extracts X X X X
X X X X Extracts X X X X
....elates to the shares held only as stock-in- trade and not at investment; and the second issue relates to the applicability of provisions of section 115JB vis-à-vis rebate u/s 88E of the Act. The issues raised in ground nos. 8 to 10 are not pressed as they are only academic in nature and therefore, they are dismissed as academic. 3. During the proceedings before us, regarding the first issue, Shri Sanjay R. Parikh, Ld Counsel for the assessee, brought our attention to page 13 of the paper book and mentioned that the assessee held whole of the dividend yielding shares as stock-in-trade only and also demonstrated the investment in shares in the year as NIL. Schedules E & F of the balance sheet were placed before us for demonstrating th....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... those unsold shares that have yielded dividend, for which, the assessee has not incurred any expenditure at all. Though the dividend income is exempted from payment of tax, if any expenditure is incurred in earning the said income, the said expenditure also cannot be deducted. But in this case, when the assessee has not retained shares with the intention of earning dividend income and the dividend income is incidental to hi business of sale of shares, which remained unsold by the assessee, it cannot be said that the expenditure incurred in acquiring the shares has to be apportioned to the extent of dividend income and that should be disallowed from deductions. In that view of the matter, the approach of the authorities is not in conformity....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s and the AO needs to workout relatable rebate to be granted in this regard. 9. We have heard both the parties, perused the material placed before us as well as the judgments cited by the Ld Counsel. On perusal of the order of this Tribunal, we find that this issue is covered by the binding judgment of the Hon'ble High Court of Karnataka in the case in the case of M/s. Horizon Capital Ltd. (supra) and the Tribunal has also decided this issue in favour of the assessee in the case of M/s. Naman Securities Finance Pvt. Ltd (supra) and para 4 is relevant in this regard which is reproduced here under:- "We have considered the submissions of learned representative of both the parties and orders of the authorities below. We observe that in the c....