ITAT Takes Contra View On Applicability Of S. 14A To Stock-in-trade

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From: editor@itatonline.org <itatonline.org@gmail.com>
Date: Fri, Aug 10, 2012 at 4:09 PM
Subject: Message from EGroup of SolapurCAs ITAT Takes Contra View On Applicability Of S. 14A To Stock-in-trade
To: editor@itatonline.org

 

Dear Subscriber,

 

The following important judgement is available for download at itatonline.org.

JCIT vs. American Express Bank Ltd (ITAT Mumbai)

S. 14A applies even if the securities are held as stock-in-trade. Article 7(3) limitation applies to all expenditure & not only to s. 44C H.O. expenditure

 

The Tribunal had to consider two issues (i) Whether the provision in Article 7(3) of the India-USA DTAA that a deduction for expenses, including a reasonable allocation of executive and general administrative expenses, would be allowed "in accordance with, and subject to the limitations of, the taxation laws of India" would apply to all expenses or only to executive & general admin expenses and (ii) whether s. 14A applied to tax-free income on securities held as stock-in-trade. HELD by the Tribunal:

(Click Here To Read More)

Regards,

Editor,

itatonline.org

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