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TMI Blog2022 (9) TMI 886X X X X Extracts X X X X X X X X Extracts X X X X ..... the requirement of consistency and certainty. It further held that individual affairs are conducted and business decisions are made in the expectation of consistency, uniformity and certainty and to detract from those principles is neither expedient nor desirable. In view thereof, a challenge to the deletion of the disallowance made u/s 36(1)(viii) of the Act is not made out. Disallowance made u/s 14A - CIT(A) issued a notice of enhancement u/s 251 and disallowed the entire expenditure claimed by the assessee therein instead of restricting the disallowance to the amount which was claimed as exempt income - HELD THAT:- With respect to the challenge of the deletion of the disallowance made u/s 14A of the Act, this issue is no longer res integ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... eard the counsel for the parties. As regards, the contention of the appellant with respect to the deletion of disallowance made under Section 36(1)(viii) of the Act, a perusal of the paper book reveals that the ITAT has observed that the said methodology has been adopted by the assessee consistently for last eight years and the same was accepted by Revenue without any objection. In fact, the record reveals that the Commissioner of Income Tax (Appeals) ['CIT(A)'] in assessee's own case for the AYs 1998-99 to 2009-10 has upheld the said deduction made by the assessee. The learned counsel for the appellant admits that no appeal has been filed challenging the said order in assessee's own case for the said AYs, except the order impugned in the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t income by applying the formula contained in Rule 8-D and holding that Section 14A of the Act would be applicable. The CIT(A) issued a notice of enhancement under Section 251 of the Act and disallowed the entire expenditure claimed by the assessee therein instead of restricting the disallowance to the amount which was claimed as exempt income. The ITAT set aside the order of the AO as well as CIT(A). The High Court upheld the order of the ITAT and dismissed the appeal filed by the Revenue. The Supreme Court after deliberating on the objectand purpose of Section 14A, conclusively held that in cases where shares are held by assessee as stock-in-trade, the dividend earned on the said shares is incidental and would not attract the provisions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estee company. In that case, whenever dividend is declared by the investee company that would necessarily be earned by the assessee and the assessee alone. Therefore, even at the time of investing into those shares, the assessee knows that it may generate dividend income as well and as and when such dividend income is generated that would be earned by the assessee. In contrast, where the shares are held as stock-intrade, this may not be necessarily a situation. The main purpose is to liquidate those shares whenever the share price goes up in order to earn profits. In the result, the appeals filed by the Revenue challenging the judgment of the Punjab and Haryana High Court in State Bank of Patiala also fail, though law in this respect has be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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