Paresh Pritamlal Mehta v. ITO

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The Tax Publishers2016 TaxPub(DT) 1897 (Pune-Trib) Paresh Pritamlal Mehta v. ITO INCOME TAX ACT, 1961 --Disallowance under section 14A --Expenditure in relation to exempt income Dividend income--Assessee had earned tax free dividend income on shares held as stock-in-trade. AO made disallowance under section 14A read with rule 8D. CIT (A) disregarding the order of Tribunal passed in assessee's own case rejected the claim of assessee. *Held:* In the case of CIT v. India Advantage Securities Ltd. in ITA No. 1131 of 2013 the order of Tribunal was confirmed wherein it was held that no disallowance under section 14A read with rule 8D can be made on shares held as stock-in-trade. CIT(A) should have maintained 'Judicial Propriety' in following the order of Appellate Authority. Therefore, the order of CIT (A) was set aside. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2016 TaxPub(DT) 1897 (Pune-Trib)

Paresh Pritamlal Mehta v. ITO

INCOME TAX ACT, 1961

--Disallowance under section 14A --Expenditure in relation to exempt income Dividend income--Assessee had earned tax free dividend income on shares held as stock-in-trade. AO made disallowance under section 14A read with rule 8D. CIT (A) disregarding the order of Tribunal passed in assessee's own case rejected the claim of assessee. Held: In the case of CIT v. India Advantage Securities Ltd. in ITA No. 1131 of 2013 the order of Tribunal was confirmed wherein it was held that no disallowance under section 14A read with rule 8D can be made on shares held as stock-in-trade. CIT(A) should have maintained 'Judicial Propriety' in following the order of Appellate Authority. Therefore, the order of CIT (A) was set aside.