2015 (8) TMI 1252

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.....2011 of CIT(A)-41,Mumbai the Assessing Officer(AO),has raised following Grounds of Appeal: 1."Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in directing the Assessing Officer to re-compute the disallowance under section 14A read with rule 80 after excluding the interest expenditure debited to profit and loss account used for trading in shares....

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.... appeal is about deletion of disallowance made u/s.14Aof the Act.During the assessment proceedings ,the AO found that the assessee had earned dividend income of Rs. 3.37 lacs,that the said income did not form part of total income, that it had not attributed any expenses towards earning the income, that it had claimed Rs. 37,575/- on account of Demat charges, that Rs. 51.91 lacs and Rs. 37.41 lacs ....

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....f current assets,that the Rule 8D was applicable to investments and not to stock in trade. The assessee relied upon the matter of Yatish Trading Co. Pvt. Ltd(129ITD327).After considering the submission of the assessee and the assessment order,the FAA held that the issue was covered in favour of the assessee by the decision of Yatish Trading Co. Pvt. Ltd.(supra), that disallowance u/s. 14A was not ....

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....ht to our notice that the issue has been conclusively decided by the Hon'ble jurisdictional High Court in the case of India Advantage Securities Ltd.(Income tax Appeal no.1131 of 2013).We find that in that case the Hon'ble court has clearly held that the disallowance if any to be made u/s.14A and rule 8 D could only be made with regard to investments and not for the shares held as stock in trade.I....