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2011 (3) TMI 496 - AT - Income TaxBusiness income or capital gain - Disallowance u/s 14A - Rule 8D of I.T. Rules - Held that:- Merely because the memorandum permits the assessee to undertake the business in shares, that does not mean that even when the assessee made investment in shares, that is to be treated as adventure in the nature of trade - whether a transaction is in the nature of 'investment' or 'trading' is to be judged by initial intention of the person at the time of purchases of shares/units - surplus arising on the sale of shares/units of Mutual Funds held as investment is to be treated as capital gain and not the business income Regarding disallowances u/s 14A - in Godrej Boyce Mfg. Co. Ltd. vs. DCIT [2010 -TMI - 78448 - BOMBAY HIGH COURT], it has been held that Rule 8D of the Rules is prospective in nature and is applicable from assessment year 2008-09 - Appeal is allowed by way of remand
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