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TMI Blog2015 (2) TMI 358X X X X Extracts X X X X X X X X Extracts X X X X ..... le of shares, which remained unsold by the assessee, it cannot be said that the expenditure incurred in acquiring the shares has to be apportioned to the extent of dividend income and that should be disallowed from deductions. When no expenditure is incurred by the assessee in earning the dividend income, no notional expenditure could be deducted from the said income, thus no disallowance u/s 14A was called for - Following decision of assessee's own previous case [2013 (1) TMI 236 - ITAT AHMEDABAD] - Decided in favour of assessee. - ITA No. 3033/Ahd/2010 - - - Dated:- 12-12-2014 - Shri N. S. Saini And Shri Kul Bharat,JJ. For the Petitioner : None For the Respondent : Shri B. Kulshrestha, Sr. DR. ORDER Per S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, it was submitted that Section 14A read with Rule 8D could not be applied to them. 4. The Assessing Officer did not find the reply of the assessee convincing and hence, made disallowance u/s 14A of ₹ 53,92,005/-. 5. The Assessee carried the matter in appeal before the CIT(A) who restricted the disallowance to ₹ 44,23,957/-. 6. Being still aggrieved by the order of the CIT(A), the assessee is in appeal before us. 7. The Authorized Representative of the assessee has filed adjournment application for adjournment of the hearing on the ground that Mr. S.N. Soparkar, Senior Advocate who has to argue the appeal before the Hon ble Bench is travelling to Mumbai for professional work. The reason stated in the adjournm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. counsel of the assessee submitted that there is no dispute about the fact that assessee was dealing in shares and securities and shares were held by him in stock in tread and therefore in view of the decision of Karnataka High Court in the case CCI Ltd. vs. Jt. CIT (Kat) reported in (2012) 71 DTR (Kar) 141 and the decision of the ITAT Pane Bench in the case of Apoorva Patni vs. ACIT reported n [2012] 24 taxmann.com 223 (Pune) no disallowance u/s 14A of theIncome Tax Act was called for in this case. On the other hand ld. D.R. relied on the order of lower authorities. 8. After hearing both the parties and perusing the record we find that assessee is engaged in the business of dealing in shares and securities and there is no dispute abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at should be disallowed from deductions. In that view of the matter, the approach of the authorities is not in conformity with the statutory provisions contained under the Act. and in the decision of the ITAT Pane Bench in the case of Apoorva Patni vs. ACIT (supra) it was held as under:- Expenditure incurred in relation to income not includible in total income- Assessment year 2006-07 - Assessing Officer found that assessee had earned exempt dividend income - Accordingly, by invoking section 14A, he attributed certain expenditure both in relation to dividend earned on account of share trading business and on shares kept under PMS - Commissioner (Appeals) retained expenditure only in relation to dividend earned on account of share tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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