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

Replies (1)

U r little confuse here,

As per sec.14A it is immaterail that it is a closing stock or investment. 14A is applicable in both cases.

 

In your case it is advisable that treat it as investment and show loss as capital gain loss.

 

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 11 July 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
11 July 2026
CA semi qualified

Vakilsearch.com

Chennai

CA Inter

View Details
Company
ARTICLESHIP 10 July 2026
Article Assistant

N S Gokhale & Co

Thane

CA Inter

View Details
Company
16 July 2026
CA Inter, CA Intermediate, CA IPCC, CA CPT , CA SemiQualifie

Vakilsearch.com

Chennai

CA Inter

View Details
Company
22 July 2026
Senior Chartered Accountant

SKSS

Patna

CA

View Details
Company
20 July 2026
Senior GST Executive

Chandak Agarwal & Co

Mumbai

Graduate (Any)

View Details
Company
ARTICLESHIP 15 July 2026
CA Articles

Kinjal H Shah & Co.

Mumbai

CA Foundation

View Details
Company
29 July 2026
ACCOUNTANT

ONESTEP GST SOLUTION

New Delhi

B.Com

View Details
Follow