{"id":2794,"date":"2013-09-12T10:19:40","date_gmt":"2013-09-12T04:49:40","guid":{"rendered":"http:\/\/www.itatonline.org\/info\/?p=2794"},"modified":"2013-09-12T10:19:40","modified_gmt":"2013-09-12T04:49:40","slug":"s-14a-disallowance-controversy-referred-to-third-member","status":"publish","type":"post","link":"https:\/\/itatonline.org\/info\/s-14a-disallowance-controversy-referred-to-third-member\/","title":{"rendered":"S. 14A Disallowance Controversy Referred To Third Member"},"content":{"rendered":"

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. <\/p>\n

ITA No.5163\/MUM\/2011 & ITA No. 5724\/MUM\/2011 Bench \u201cD\u201d (A.Y. 2008-09]((Cross Appeals in the case of Dy.CIT v. D.H. Securities Pvt. Ltd<\/strong><\/p>\n

Sub: Reference under section 255(4) of the Income Tax Act, 1961.<\/strong><\/p>\n

\u201cWhether 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?\u201d<\/p><\/blockquote>\n

Note<\/strong>: The controversy was first dealt with by the Special Bench in Daga Capital<\/a><\/strong> 117 ITD 169 (Mum)(SB). Thereafter, despite the High Court verdicts in CCI Ltd<\/a><\/strong> 71 DTR (Kar) 141 & Leena Ramachandran<\/a><\/strong> 339 ITR 296 (Ker) holding that s. 14A does not apply to stock-in-trade, some Division Benches have held that s. 14A applies to stock in trade (Damani Estates<\/a><\/strong> & American Express Bank<\/a><\/strong>) while others have held to the contrary (Yatish Trading<\/a><\/strong>, India Advantage<\/a><\/strong>, Gulshan Investments<\/a><\/strong> & Esquire Pvt. Ltd<\/a><\/strong>). It would be appropriate if the controversy is now referred to a 5 Member Special Bench instead of to a Third Member<\/div>\n","protected":false},"excerpt":{"rendered":"

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<\/p>\n

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