TMI Blog2015 (8) TMI 1252X X X X Extracts X X X X X X X X Extracts X X X X ..... es Ltd.(2015 (6) TMI 140 - BOMBAY HIGH COURT) wherein clearly held that the disallowance if any to be made u/s.14A and rule 8 D could only be made with regard to investments and not for the shares held as stock in trade.In the case under consideration, the FAA had followed the decision of Tribunal delivered in the case of Yatish Trading Co.Pvt.Ltd.(2010 (11) TMI 183 - ITAT, MUMBAI ). The view take ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowance under section 14A read with rule 80 after excluding the interest expenditure debited to profit and loss account used for trading in shares by the assessee, relying on the decision of the Hon'ble ITAT in the the case of Yatish Trading Co. Pvt. Ltd. vs. ACIT 129 ITD 237, even if such shares yield income which does not form part of the total income under the Income-tax Act, 1961. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not attributed any expenses towards earning the income, that it had claimed ₹ 37,575/- on account of Demat charges, that ₹ 51.91 lacs and ₹ 37.41 lacs were claimed under the heads d-mat charges and other expenses respectively, that it had also shown speculation profit of ₹ 13.51 lacs. The AO held that the assessee has not submitted any evidence to show that no portion of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the assessment order,the FAA held that the issue was covered in favour of the assessee by the decision of Yatish Trading Co. Pvt. Ltd.(supra), that disallowance u/s. 14A was not applicable on the interest expenditure used by the assessee for trading in shares shown as stock in trade in the balance sheet, that the interest on borrowed funds used in trading activity was allowable expenditure u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on ble court has clearly held that the disallowance if any to be made u/s.14A and rule 8 D could only be made with regard to investments and not for the shares held as stock in trade.In the case under consideration, the FAA had followed the decision of Tribunal delivered in the case of Yatish Trading Co.Pvt.Ltd.(supra).The view taken by the Tribunal has been upheld by the Hon ble Bombay High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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