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2023 (9) TMI 598 - ITAT MUMBAIDisallowance u/s 14A r.w.r. 8D - income exempted under section 10 of the Act - Assessee submitted that since the exempt income earning securities are held by it as stock in trade, therefore, disallowance of expenditure u/s 14A cannot be made - HELD THAT:- As per the assessee, the securities are held by it in the ordinary course of its business and the profits and gains on sale/transfer of such securities are offered to tax while computing the income under the head “profits and gains from business or profession”, therefore such securities constitute stock in trade of assessee’s business. No dispute has been raised by the Revenue as regards the aforesaid submission. We find that while deciding a similar issue in PCIT v/s Punjab National Bank [2022 (6) TMI 85 - DELHI HIGH COURT] wherein dismissed the appeal filed by the Revenue and upheld the findings of the Tribunal in deleting the disallowance made under section 14A read with Rule 8D direct the AO to delete the disallowance made under section 14A read with Rule 8D. Decided in favour of assessee.
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