Disallowance of expenses related to shares held as stock-in-trade:

The Kolkata Bench of the Income-tax Appellate Tribunal held that the rules for expense disallowance under section 14A of the Income-tax Act, 1961 apply to shares held as stock-in-trade, but that such expense disallowance is limited to those shares that have yielded dividend income in the year at issue. The case is: Kalyani Barter (P) Ltd. Read an April 2017 report [PDF 364 KB] of KPMG