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

DCIT vs. India Advantage Securities Ltd (ITAT Mumbai)

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: