2018 (2) TMI 252

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....nt has challenged correctness of the order dated 18th September 2013 passed by the by the CIT(A)-VIII, Ahmedabad, in the matter of assessment under section 143(3) of the Income-tax Act, 1961, for the assessment year 2009-10. 2. The grievances raised by the assessee are as follows:- "1. Ld.CIT (A) has erred in law and on facts in enhancing the disallowance under section 14A of the Income Tax Act....

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....4C & 234D of the Act." 2. When this appeal was called out for hearing, the learned Counsel for the assessee pointed out that, in the present case, there is no tax exempt income inasmuch as the dividends earned on the shares have been offered to tax and accepted as business income for the reasons that the related shares, on which these dividends were earned, were held as stock in trade. The Asses....

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....6,37,626/- under Section 14A of the Act. 3. Learned Departmental Representative does not dispute the factual and legal contentions so raised by the learned Counsel for the assessee, but relied on the orders of the authorities below nevertheless. 4. The plea indeed is well taken. The legal position is fairly well settled that in the absence of any tax exempt income, disallowance under Section 14A....