The controversy over whether s. 14A can apply to a case where shares (and other securities) are held as stock-in-trade (and not as investment) has been referred to a Third Member. The matter is posted for hearing on Friday, 13th September 2013. Hon’ble U. B. S. Bedi, Judicial Member, is the Third Member.
ITA No.5163/MUM/2011 & ITA No. 5724/MUM/2011 Bench “D” (A.Y. 2008-09]((Cross Appeals in the case of Dy.CIT v. D.H. Securities Pvt. Ltd
Sub: Reference under section 255(4) of the Income Tax Act, 1961.
“Whether on the facts and in the circumstances of the case disallowance under section 14A of the Income Tax Act, 1961 (the Act) can be made where dividend income has been earned on the share held as stock in trade?”