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2011 (9) TMI 1040 - AT - Income TaxDisallowance u/s 14A - Held that:- In the facts of the case, the turnover of the share trading cannot be a basis for disallowance of interest expenditure; because the dividend income earned is only on that part of the shares, which are held as stock-in-trade. Even otherwise, it is clear from the record that the assessee’s own fund is much more than the average stock-in-trade of the assessee; then, in our opinion, no disallowance of interest expenditure can be made u/s 14A. Not deducted tax at source (TDS) while making payments to the BSE - Decided in favour of assessee Disallowance of payment to the Jobbers/Arbitragers - Held that:- We do not see how such payments can be termed as payments to contractors for any work to be carried out by them. We therefore uphold the finding of the CIT (A) that these payments do not attract section 194C and the assessee was not liable to deduct tax there from. Accordingly section 40(a)(ia) is also not applicable. Disallowance of the penalty paid to the Stock Exchange - Decided in favour of assessee.
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