While it is clear that Explanation to Section 73 is applicable on shares of a company and units purchase and sale does not come within its purview, there can be sepculative trade in case of mutual fund units u/s 43(5) and if any loss arises from such trades in iunits, it can not be adjusted [...]
Section 73: Nature of Activity Important For Deciding Principal Busienss !
September 11, 2012 by
The assessee-company , engaged in the business of financing by way of granting loans and advances and earning interest therefrom and also dealing in stock and shares , filed a return declaring a total loss after adjusting the business income of interest from loans and advances. In view of the provisions of Explanation to section...
Explanation to Section 73: Nature of Principal Business Important !
September 11, 2012 by
The assessee-company was daling in shares as well as earning income from business of trading in steel, yarn, fabrics as also from service charges.Its computation of gross total income showed loss under the head business wherease dividend was poistive income under the head ” income from other sources”.The dividend income was earned on shares held...
No 14A Disallowance if Dividend Received on Stock-in-Trade
September 1, 2012 by Leave a Comment
The assessee a dealer in shares and securities earned dividend income from shares. The assessee claimed expenditure on brokerage of arranging interest free loan which was for payment of conversion cost of its stock of partly paid shares into fully paid shares. The Assessing Officer disallowed this amount on the ground that it was spent [...]
No 14A Disallowance , If No Interest Bearing Fund Used For Earning Exempt Income
September 1, 2012 by Leave a Comment
The assessee-company was engaged in the manufacturing of cycles and parts of two-wheelers in multiple units. It earned dividend income. The Assessing Officer disallowed certain expense under section 14A(3).The CIT (Appeals) although partly upheld the addition, the Tribunal allowed assessee fully on its finding that the entire investment had been made by the assessee out [...]
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