Practical case query- section-14a of it act,1961

Hello.. There is one practical query..

Facts of the case:

HUF having business of only Trading in Shares (quoted-unquoted both) and derivatives. Showing huge Speculation Losses from past 4 years. Earning Dividend Income. Paying interest on unssecured loans. In balance sheet the assessee is showing Closing Stock of Shares & Derivatives..

Query: 

1) Can we treat closing stock as investment & apply Section 14A??

2) Is this disclosure of closing stock correct??

Note: Please mention the reason for your answer w.r.t. any case law judgement(if any).Its urgent.

Thanks & Regards
Manisha Sharma