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2016 (3) TMI 864 - AT - Income TaxDisallowance u/s 14A - Held that:- The assessee has incurred interest expenditure for earning exempt income. As per the balance sheet placed on record, the assessee was holding shares as stock-in-trade as well as investments. While working out disallowance u/s.14A the AO had worked out disallowance under rule 8D taking into account entire shares held by assessee treating the same as investments. In the interest of justice, we restore this issue back to the file of AO for recomputing the disallowance to be made under Rule 8D by excluding the shares held as stock-in-trade while working out the average investment. Thus, no disallowance can be made in respect of funds involved in shares and securities held as stock-in-trade. We direct accordingly.
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