TaxTMI 
TaxTMI 
2021 (6) TMI 1191
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....Whether on the facts and circumstances of the case and in law, the Tribunal is justified in restoring the issue of disallowance under section 14A to the file of the Assessing Officer with directions to recalculate the disallowance under section 14A r.w.r. 8D (2)(iii) by taking into account only the investments which yielded exempt income during the said year, by relying on the decision of the Special Bench in the case of ACIT vs. Vireet Investment (P) Ltd., (82 taxman.com 415 (Del) when the assessing authority has rightly invoked section 14A r/w Rule 8D(2)(iii) as conditions set out therein are fully satisfied?". 3. After hearing Sri. Sanmathi E.I. learned counsel for appellants, appeal is admitted on the aforesaid substantial question o....
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....ar No. 3/2010 and Section 73 does not allow setting off of speculation loss against any other income other than speculation income?" 5. The Division Bench of this Court in the aforesaid appeal in paragraphs 14 & 15 has held as under: "14. Now we may advert to the second substantial question of law. It is pertinent to note that for Assessment Year 2009-10 the assessee has not earned dividend income. The aforesaid fact has not been disputed by the revenue. It is also relevant to mention that Circular No. 5/2014 dated 11.02.2014 is not applicable in the instant case as the instant case pertains to Assessment Year 2009-10. The aforesaid Circular has no retrospective operation. It is noteworthy that aforesaid Circular was not e....
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.... the view taken in the two decisions viz., KINGFISHER FINVEST INDIA LTD. AND M/S NOVEL SOFTWARE INDIA (P) LTD. supra. At this stage, we may refer to Paragraph 40 of the decision of the Supreme Court in MAXOPP supra, the relevant extract of which reads as under: It is to be kept in mind that in those cases where shares are held as 'stock-in-trade', it becomes a business activity of the assessee to the deal in those shares as a business proposition. Whether dividend is earned or not becomes immaterial. In fact, it would be a quirk of fate that when the investee company declared dividend, those shares are held by the assessee, though the assessee has to ultimately trade those shares by selling them to earn profits. The situati....
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....f MAXOPP INVESTMENT LTD is an authority for the aforesaid proposition that the provision is relatable to earning of actual income. The object of Section 14A is to curb the practice to claim deduction of expenses incurred in relation to exempt income against taxable income and at the same time avail of the tax incentive by way of exemption of exempt income without making any apportionment of expenses incurred in relation to exempt income. The High Court of Madras has relied on the decision of the Supreme Court in COMMISSIONER OF INCOME TAX VS. WALFORT SHARE AND STOCK BROKERS (2010) 326 ITR 1 wherein it has been held that Section 14A is relatable to income of actual income or not notional or anticipated income. Therefore, the conclusion arriv....