Tribunal held that real dividend income alone is exempt from tax and not notional recognition of income at balance sheet date. Therefore, difference between value of actual investment made by assessee in mutual funds and value as on balance sheet was not dividend income and hence, AO could not invoke S. 14A of the Act. (AY. 2015-16)
Apollo Sugar Clinics Ltd. v. DCIT (2019) 176 ITD 724/ 200 TTJ 875 182 DTR 142 TR 142 (Hyd.) (Trib.)
S. 14A : Disallowance of expenditure-Exempt income-Difference between value of actual investment and value as on balance sheet is not dividend income- Addition cannot be made. [R. 8D]