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2023 (10) TMI 459 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - AO observed that in the instant case the assessee has not maintained any separate account and nor furnished any documentary evidence of expenses towards earning exempt income - HELD THAT:- As in view of the judgment of Maxopp case [2018 (3) TMI 805 - SUPREME COURT] wherein it has been held that when the shares are held as 'stock-in-trade', by virtue of Section 10 (34) of the Act, this dividend income is not to be included in the total income and is exempt from tax, which triggers the applicability of Section 14A which is based on the theory of apportionment of expenditure between taxable and non-taxable income as held in Walfort Share & Stock Brokers (P.) Ltd. case [2010 (7) TMI 15 - SUPREME COURT] Therefore, to that extent, depending upon the facts of each case, the expenditure incurred in acquiring those shares will have to be apportioned. Accordingly, in view the above observations by Hon’ble Supreme Court in Maxopp case (supra) and in the case of Gajanan Enterprises [2020 (2) TMI 17 - ITAT MUMBAI] we are of the considered view that Ld. CIT(Appeals) has not erred in facts and in law holding that the provisions of section 14A of the Act are applicable and thereby restricting the disallowance to the extent of dividend income earned by the assessee. Decided against assessee.
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