9911796707
TMI Blog2022 (1) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness without any further efforts. No direct expenses were said to have been incurred by the assessee in dealing with the shares for the purpose of earning dividend nor any interest component is involved in dealing with such shares which are admittedly stock-in-trade. As held by the ld. CIT(A), this issue is no longer res integra and is squarely covered by the decision of Hon ble jurisdictional High court in the case of Acb India Ltd. [ 2015 (4) TMI 224 - DELHI HIGH COURT] wherein it is held that while calculating the disallowance u/s. 14A read with Rule 8D(2)(iii) only those investments which could yield dividend should be taken into account and not those investment which could not earn any dividend during the year. Mere fact that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income on 25.09.2014 declaring an income of ₹ 85,62,26,770/-. Assessment u/s. 143(3) of the Income-tax Act, 1961 (for short the Act ) was complete by order dated 30.12.2016 by making an addition of ₹ 2,19,41,880/- u/s. 14A of the Act read with Rule 8D of the Incometax Rules. The assessee pleaded that they are dealing in securities and no expenditure was incurred in relation to exempt income in terms of section 14A of the Act and as a matter of fact, no additional efforts were put to earn the tax free income since it generated from the stock in trade which were procured in the normal course of business. Further, the case of the assessee is that there is no direct nexus between the expenditure disallowed and the expenditure in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the purpose of computing the disallowance u/r 8D(2)(iii), only such investments which yield dividend has to be considered but not the entire investment in view of the decision of jurisdictional High Court in the case of ACIT vs. Acb India Ltd. (supra) and therefore, the order of the ld. CIT(A) is legal and does not warrant any interference. 8. We have gone through the record in the light of submission made on either side. It could be culled out from the orders of the authorities below that the assessee has been a subsidiary of one of the largest Indian Commercial Bank, i.e., Punjab National Bank and has been playing a pivotal role in creating market for Government Securities. The assessee has been dealing with the government securities ..... X X X X Extracts X X X X X X X X Extracts X X X X
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