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2014 (5) TMI 358 - AT - Income TaxDisallowance u/s 14A of the Act r.w. rule 8D of the Rules – Computation of Disallowance – Held that:- Following Maxopp Investment Ltd. Vs. CIT - [2011 (11) TMI 267 - Delhi High Court] – the AO cannot embark upon a determination of the amount of expenditure for the purposes of section14A(1) - the order of the is set aside and the matter is remitted back to the AO for fresh adjcudication – Decided in favour of Assessee. STCG treated as Business income – Held that:- Following Commissioner of Income Tax (Central) Versus M/s Express Securities Pvt. Ltd. [2013 (10) TMI 1182 - DELHI HIGH COURT] - merely because due to amendment under the Income Tax Act by which long term capital gain is exempt and short term capital gain is chargeable at a lesser rate of tax, then business income does not mean that the conversion of stock-in-trade to the investment is improper or illegal - The assessee was entitled to convert the holding from stock-in-trade to investment on noticing the tax benefit - on the sale of shares during the year which were converted into stock-in-trade last year, the gain arising was partly long term capital gain and partly short term capital gain in view of the period of holding of such shares – thus, the AO was not justified in treating the short term capital gain as income from business or profession – Decided in favvour of Assessee.
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