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2019 (11) TMI 342 - HC - Income TaxDisallowance of contribution made to the Employees Provident Fund Trust - legitimate business expenditure - HELD THAT:- Principal Commissioner of Income Tax -07 vs. Punjab and Sind Bank [2017 (9) TMI 1528 - DELHI HIGH COURT] although contributions to the pension funds may not be allowable under Section 36 (1) (iv) of the Act, the same is allowable under Section 37 Disallowance of expenditure u/s 14A - HELD THAT:- As decided in Maxopp Investment Ltd vs. CIT [2018 (3) TMI 805 - SUPREME COURT] whenever dividend is declared by the investee company that would necessarily be earned by the assessee and the assessee alone. Therefore, even at the time of investing into those shares, the assessee knows that it may generate dividend income as well and as and when such dividend income is generated that would be earned by the assessee. In contrast, where the shares are held as stock-in-trade, this may not be necessarily a situation. The main purpose is to liquidate those shares whenever the share price goes up in order to earn profits. The Tribunal has held in favour of the respondent assessee that it had earned the revenue on the shares held as stock in trade only by a quirk of fate.
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