The assessee had however, not made any disallowance of expenses relating to exempt income. It was also submitted that the shares had been shown as stock-in-trade in the books of accounts and, therefore, such stock-in-trade could not be taken into account while computing the disallowance under Rule 8D.

SEC Form PRE 14A

The CIT A was satisfied by the explanation given and agreed that the disallowance under Rule 8D could be made only with respect to investment and not in stock-in-trade. Anriya Project Management Services P Ltd. The assessee during the year did not earn any exempt income and therefore, did not make any disallowance under section 14A in its return of income.

TITLE 8 - CHAPTER 1. GENERAL CORPORATION LAW - Subchapter VII. Meetings, Elections, Voting and Notice

Therefore, he held that proportionate interest on investments earning exempt income is disallowable. During the course of assessment proceedings, the assessee submitted that the said expenses were incurred for acquisition of the entire controlling interest in subsidiary company — Eicher Limited since the assessee was a promoter of the said subsidiary and also has business interest in it.

Ltd [Merchant Banker] and ILFS Investments Securities Limited [Syndicate Member] were obtained. Pursuant to the delisting of shares of Eicher Limited [after acquisition of shares from public share-holders], Eicher Limited was amalgamated with the assessee w.

The CIT A confirmed the disallowance. Dhampur Sugar Mill Pvt.

Ltd ITA No of dated The assessee is engaged in the business of the manufacture and sale of sugar, chemicals and power, and has a distillery. Bellwether Microfinance Fund Pvt Ltd v ITO ITA No. Assessee entered into a fund management agreement with Caspian Advisors Pvt.

14A is applicable to shares held as stock-in-trade; but Rule 8D cannot be applied - Kol ITAT - Paras Sheth & Associates

CAPL was holding The fund manager was to be paid remuneration for the fund based services. The assessee under clause i of Rule 8D 2 i.

DCIT ITAT Mumbai Third Member Background: The assessee claimed that as it was engaged in the business of trading in shares, its main object is to earn profit on purchase and sale of shares and not to earn dividend income from such shares.

It also claimed that though the assessee had not incurred any direct or indirect expenditure to earn the said dividend, the AO had made the disallowance on a presumptive basis.

The Division Bench referred the dispute to a Third Member in view of the difference of opinion between the Benches. The assessee earned dividend income from certain investments.

no sec 14a disallowance when dividend is earned on shares held as stock in trade

OF dtd The AO has stated that assessee has not allocated any expense incurred for earning of such tax-free income. Assessee stated that no expenditure has been incurred to earn the exempted income.

However, AO did not agree with above contention of assessee and by applying r. During the year under consideration, the assessee received dividend income of Rs.

A disallowance of Rs. The said disallowance comprises of interest at Rs. The balance disallowance of Rs. Receive Tax Updates by mail Leave Blank: Search Posts Search for: