Hi,
The facts of the case are as under:
The assessee is an investor. The investments made in shares are from his own sources and no loan (short term or long term) has been taken against the same. Apart from other income the assessee also has short and long term capital gain. The assessee has also received dividend (which is claimed as exempt as per the provisions of the IT Act)
The assessee has not incurred or claimed as expense any interest from any of his income (taxable and non - taxable). The assessee has incurred expenses such as brokerage, STT, etc as levied by the brokerage firm. However the same have not been claimed as expenses from his capital gain income
Mine queries are
1. Can the AO in accordance with section 14 A rwr 8D of the IT act, calculate expenditure and treat the same as income of the assessee.
2. Will the answer be different if the assessee had claimed brokerage, etc (BUT NOT STT) as expenses from his capital gain income?
Please provide any circulars / notifications / ruling which can help the assessee strength his case.
Thanks in advance for all your replies.
CA CSJ
CAclubindia
