Dismissing the appeal the Court held that capital gains arising from investment in shares and securities was rightly treated by the Tribunal as capital gains. Court also held that interest free funds available with assessee were far more than gross investment, hence no disallowance of can be made under section 14A of the Act.
PCIT v. Gujarat Fluorochemicals Ltd. (2021) 133 taxmann.com 211 (Guj)(HC) Editorial : SLP of revenue is dismissed as infructuous; PCIT v. Gujarat Fluorochemicals Ltd. (2022) 284 Taxman 451 (SC)
S. 45 : Capital gains-Shares and securities as investment-Assessable as capital gains and not as business income-Interest free funds available was more than gross investment-No disallowance can be made. [S. 14A, 28(i), R.8D]