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2020 (12) TMI 774 - AT - Income TaxDisallowance u/s 14A - Apportionment of the expenditure qua strategic and non-strategic investment in shares - As no dividend income was earned on shares held as investment, the action of the Ld. CIT (A) in upholding the disallowance u/s 14A is squarely against the order of Jurisdictional HC in Cheminvest Ltd. [2015 (9) TMI 238 - DELHI HIGH COURT] - HELD THAT:- As relying on MAXOPP INVESTMENT LTD. [2018 (3) TMI 805 - SUPREME COURT] when assessee company has admittedly earned the dividend income of ₹ 1,79,87,005/- and has incurred administrative and operative expenses and share trading expenses to the tune of ₹ 3,14,48,275/- as against the total trading of shares carried out during the year from which profits have been earned to the tune of ₹ 2,39,19,454/-, apportionment of the expenditure qua strategic and non-strategic investment in shares has to be made and disallowance by way of applying Rule 8D (2)(iii) on the average value of stock-in-trade is not applicable. So, appeal filed by the assessee is partly allowed and AO is directed to compute the disallowance by way of apportionment of expenditure incurred by the assessee in relation to exempt income by segregating the expenditure qua strategic and non-strategic investment in shares.
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