TMI Blog2017 (3) TMI 1548X X X X Extracts X X X X X X X X Extracts X X X X ..... can be made for the securities held as stock in trade. The reason behind it is not difficult to understand. Income arising from the business of an assessee is taxed under the head business and profession. So, all the expenses have to be considered while computing the business income. On the other hand, if the securities are held as investment and an assessee earns exempt income, same can be subjec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,Mumbai, the assessee has filed the present appeal. Assessee-company, engaged in the business of computer software development and consultancy, filed its return of income on 27/ 09/2012,declaring loss of ₹ 22.59 lakhs. The Assessing Officer(AO)completed the assessment, u/s.143 (3)of the Act, on 18/03/2015, determining its income at ₹ 39.90 lakhs. 2. Effective ground of appeal is abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in connection with the loan taken for giving margin money to the broker for F O transactions and for purchasing trading stock, that other expenses were eligible to share trading, that no expenses were incurred for earning exempt income, that the share trading income and future and option transactions were taxable, that the disallowance could not exceed the exempt income of ₹ 31.15 lakhs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 5. After hearing the rival submissions, we find that the only issue to be decided is as to whether the expenditure eligible to stock in trade can be disallowed invoking the provisions of section 14 A r.w.r.8D of the Rules. We find that in the cases relied upon by the AR, it has been clearly held that no disallowance u/s.14A r.w.r 8D of the Rules, can be made for the securities held as stock i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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