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2011 (7) TMI 519 - HC - Income TaxDisallowance u/s 14A - Tribunal held that there was sufficient surplus funds available with the assessee to invest and there was no nexus that could be established with the expenditure incurred by the assessee for earning the dividend income - Held that:- By discussing at length the similar view taken in the case of A.C.I.T vs. Jupiter Corporate Services Limited [2009 (7) TMI 1100 - ITAT AHMEDABAD] it concluded that in absence of any material, it was evident that no expenditure had been incurred by way of interest which could be related to dividend income, nor was brought any material to suggest that the borrowed funds were utilized for investment in shares - While there was no disallowance of interest paid on borrowed funds was made in the preceding Assessment Year, there was no material available before the Tribunal to take a different view than already taken in the earlier Assessment Year - Logic given for conclusion requires no interference - It was on the basis of evidence which was presented before the Tribunal that the conclusion had been arrived at with regard to availability of the free-funds for investment, and therefore, this Appeal merits no consideration - Accordingly, the present Tax Appeal is dismissed with no order as to costs.
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