The assessee, a housing finance company earned exempt income from shares held as stock in trade. The Supreme Court has in Maxopp’s case conclusively held that in cases where shares are held by assessee as stock-in-trade, the dividend earned on the said shares is incidental and would not attract the provisions of section 14A of the Act. (Followed: Maxopp Investment Ltd. vs. CIT (2018) 91 taxmann.com 154/ 254 Taxman 325 / 402 ITR 640 / (2018) 15 SCC 523 and South Indian Bank Ltd. vs. CIT (2021) 130 taxmann.com 178 / 283 Taxman 178 / 438 ITR 1 (SC) (AY. 2010-11)
PCIT v. PNB Housing Finance Ltd. (2023) 146 taxmann.com 445 / (2024) 461 ITR 476 (Delhi) (HC)/Editorial : SLP dismissed PCIT v. PNB Housing Finance Ltd., (2024) 297 Taxman 229 (SC)/[2024] 461 ITR 481 (SC)
S.14A : Disallowance of expenditure-Exempt income-Shares held as stock in trade-Dividend income earned-Order of Tribunal deleting the addition is affirmed. [S.260A]