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| The Tax Publishers2020 TaxPub(DT) 0613 (Del-Trib) INCOME TAX ACT, 1961
Section 14A Rule 8D
Where assessee was a bank and its shares were held as stock-in-trade, the income derived from such shares was attributable to business of banking falling under the head 'profits and gains of business and profession' and hence, such arrangement would not be considered as investments in order to fall within the ambit of Rule 8D (iii).
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Disallowance under section 14A - Expenditure against exempt income - Shares held as stock-in-trade -
AO made disallowance under section 14A read with rule 8D. However, CIT (A) allowed claim of assessee under section 14A read with rule 8D(ii) but confirmed disallowance under rule 8D(iii). Held: Since assessee was a bank and its shares were held as stock-in-trade, the income derived from such shares was attributable to business of banking falling under the head 'profits and gains of business and profession' and hence, such arrangement would not be considered as investments in order to fall within the ambit of rule 8D (iii).
Followed:Maxopp Investment Ltd. v. CIT (2018) 91 taxman.com 154 (SC): 2018 TaxPub(DT) 1403 (SC)
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2011-12
INCOME TAX ACT, 1961
Section 37(1)
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