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Friday, October 12, 2012

Section 14A: ITAT Dissents On Applicability To Trading Shares

 

Dear Subscriber,

 

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


DCIT vs. India Advantage Securities Ltd (ITAT Mumbai)

ITAT view that s. 14A applies to shares held as stock-in-trade cannot be followed

 

The assessee claimed, relying on Leena Ramachandran 339 ITR 296 (Ker) & CCL Ltd 250 CTR 291 (Kar), that as the shares were held as stock-in-trade, s. 14A did not apply. The department opposed this plea by relying on American Express Bank where the view was taken, after considering Leela Ramchandran & Daga Capital Management 117 ITD 169 (Mum) (SB), that s. 14A applied even to a trader in shares. HELD by the Tribunal:


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Regards,


Editor,


itatonline.org

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