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2016 (10) TMI 698 - ITAT AHMEDABADDisallowance of expenditure u/s.14A - Held that:- It is an undisputed fact that the assessee is doing business of trading in shares and the shares at the end of the year are shown as stock-in-trade and the income from trading of shares has been shown as business income by the assessee. We find that the ld.CIT(A), after relying on the decision of Hon’ble Karnataka High Court in the case of CCI Ltd. [2012 (4) TMI 282 - KARNATAKA HIGH COURT ], has noted that where the dividend income was incidental to the business of sales of shares, no disallowance u/s.14A could be made. We further find that Coordinate Bench in the case of Anjalee Exim Private Limited vs. ACIT [2015 (11) TMI 110 - ITAT AHMEDABAD ] has similarly held that Rule 8D will have no application when the shares are held as stock-in-trade - Decide in favour of assessee
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