TMI Blog2019 (2) TMI 1054X X X X Extracts X X X X X X X X Extracts X X X X ..... gain control or held as stock-in-trade - Decided in favour of revenue. - ITA Nos. : 5334, 5335 And 5336/Mum/2016 - - - Dated:- 20-12-2018 - Shri Joginder Singh, Vice-President And Shri M. Balaganesh, Accountant Member For the Appellant : Shri B.B. Rajendra Prasad (DR) For the Respondent : None ORDER PER M. Balaganesh, AM: 1. These appeals by the Revenue are directed against the order of the Ld. CIT(A)-47, Mumbai dated 24.06.2016 for the A.Ys 2009-10, 2010-2011 2011-12, which in itself directed against the order passed by the Assessing Officer (for short the A.O ) u/s. 143(3) r.w.s 153A of the Income-tax Act, 1961 (for short the Act ). 2. Since the identical issue is involved in all these appeals, they ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re made in order to gain control or held as stock-in-trade. The relevant operative portion of the said judgment is reproduced hereunder: 33) There is no quarrel in assigning this meaning to section 14A of the Act. In fact, all the High Courts, whether it is the Delhi High Court on the one hand or the Punjab and Haryana High Court on the other hand, have agreed in providing this interpretation to section 14A of the Act. The entire dispute is as to what interpretation is to be given to the words in relation to in the given scenario, viz. where the dividend income on the shares is earned, though the dominant purpose for subscribing in those shares of the investee company was not to earn dividend. We have two scenarios in these sets of ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lation to the income that does not form part of total income. Considered in this hue, the principle of apportionment of expenses comes into play as that is the principle which is engrained in Section 14A of the Act. This is so held in Walfort Share and Stock Brokers P Ltd., relevant passage whereof is already reproduced above, for the sake of continuity of discussion, we would like to quote the following few lines therefrom. The next phrase is, in relation to income which does not form part of total income under the Act . It means that if an income does not form part of total income, then the related expenditure is outside the ambit of the applicability of section 14A.. xxx xxxxxx The theory of apportionment of expenditure betw ..... X X X X Extracts X X X X X X X X Extracts X X X X
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