TMI Blog2019 (5) TMI 1131X X X X Extracts X X X X X X X X Extracts X X X X ..... INCOME TAX-I VS. D.B. CORP LTD. [ 2018 (3) TMI 805 - SUPREME COURT] whenever dividend is declared by the investee company that would necessarily be earned by the assessee and the assessee alone. Therefore, even at the time of investing into those shares, the assessee knows that it may generate dividend income as well and as and when such dividend income is generated that would be earned by the assessee. In contrast, where the shares are held as stock-in-trade, this may not be necessarily a situation. The main purpose is to liquidate those shares whenever the share price goes up in order to earn profits - Decided against revenue. - ITA-354-2018 (O&M) - - - Dated:- 10-5-2019 - MR AJAY KUMAR MITTAL AND MR AVNEESH JHINGAN, JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14A of the Act read with Rule 8D of the Income Tax Rules, 1962 (in short the Rules ) besides other additions. Feeling aggrieved by the order, Annexure A-I, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [for brevity the CIT(A) ]. The CIT(A) vide order dated 28.12.2015 (Annexure A-II) deleted the disallowance of ₹ 2,15,56,021/- made under Section 14A of the Act read with Rule 8D of the Rules. Against the order, Annexure A-II, the revenue filed an appeal before the Tribunal. The Tribunal vide order dated 29.11.2017 (Annexure A-III) restricted the disallowance under Section 14A of the Act read with Rule 8D of the Rules upto the exempt income earned by the assessee. Hence, the present appeal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mind that in those cases where shares are held as stock-in-trade , it becomes a business activity of the assessee to deal in those shares as a business proposition. Whether dividend is earned or not becomes immaterial. In fact, it would be a quirk of fate that when the investee company declared dividend, those shares are held by the assessee, though the assessee has to ultimately trade those shares by selling them to earn profits. The situation here is, therefore, different from the case like Maxopp Investment Ltd. where the assessee would continue to hold those shares as it wants to retain control over the investee company. In that case, whenever dividend is declared by the investee company that would necessarily be earned by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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