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2016 (12) TMI 45 - ITAT PUNEAdditional disallowance made u/s. 14A r.w. Rule 8D - dividend income earned by the assessee on shares and mutual funds held as stock-in-trade - Held that:- The issue raised in the present set of appeals is identical to one adjudicated by the Co-ordinate Bench of the Tribunal in the case of Kunal Polymers Pvt. Ltd. Vs. Dy. Commissioner of Income Tax [2015 (10) TMI 2373 - ITAT PUNE] wherein held that assessee has not held the shares for earning dividend income. Dividend income is incidental to the share trading business of the assessee. Thus, no disallowance u/s. 14A is warranted on dividend earned on shares held as stock-in-trade, Also in the case of CCI Ltd. Vs. JCIT (2015 (10) TMI 2373 - ITAT PUNE ) has held that when no expenditure has been incurred by the assessee in earning the dividend income no notional expenditure could be deducted from the said income. The Hon'ble High Court further held that when the assessee has not retained shares with the intention of earning dividend and the dividend income is incidental to business of sale of shares no disallowance u/s. 14A of the Act is to be made. - Decided in favour of assessee
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