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TMI Blog2024 (2) TMI 1476X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of Maxopp Investment Ltd [ 2018 (3) TMI 805 - SUPREME COURT] assessee was not required to make any disallowance u/s 14A of the Act on shares held as stock in trade. Decided against revenue. - Shri N.K. Billaiya, Accountant Member, And Ms Astha Chandra, Judicial Member For the Assessee : Shri Rohit Jain, Adv. Ms. Somya Jain, CA. For the Department : Shri Vivek Vardhan, Sr. DR. ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER : This appeal by the Revenue is preferred against the order of the ld. CIT (A)-7, Delhi dated 03.07.2019 pertaining to A.Y. 2015-16. 2. The sum and substance of the grievance of the Revenue is that the CIT (A) erred in deleting the addition of Rs. 1,94,35,008/- made by the Assessing Officer u/s 14A of the Income-t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and therefore, firstly, no disallowance u/s 14A of the Act needs to be made and, secondly, suo motto disallowance made by the assessee should suffice. 9. We have given thoughtful consideration to the orders of the authorities below. We have also given due consideration to the relevant documentary evidences brought on record in the form of Paper Book. On perusal of the details of profit from trading in equity shares and equity derivatives, we find that the assessee has shown total income at Rs. 3,05,54,320/-. Income has been earned from shares held as stock in trade. Detail of such shares is exhibited at pages 67 and 68 of the Paper Book wherein shares purchased during the year were sold during the year itself, there being no opening and c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kept in mind that in those cases where shares are held as stock-in-trade , it becomes a business activity of the assessee to deal in those shares as a business proposition. Whether dividend is earned or not becomes immaterial. In fact, it would be a quirk of fate that when the investee company declared dividend, those shares are held by the assessee, though the assessee has to ultimately trade those shares by selling them to earn profits. The situation here is, therefore, different from the case like Maxopp Investment Ltd. where the assessee would continue to hold those shares as it wants to retain control over the investee company. In that case, whenever dividend is declared by the investee company that would necessarily be earned by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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