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2013 (12) TMI 189 - AT - Income TaxDisallowance of Interest u/s 14A – The assessee invested Rs. 10,99,00,000 in shares and also paid share application money of Rs. 47,51,00,000 of one M/s. Sringaravalli Consultants P. Ltd. - Held that:- The assessee was doing investment as well as share trading as a part of its business - The assessee is a trader in share - Even if the shares were held as a part of its investment, such holding of shares could still be considered only as a part of its business – The dividend earned by the assessee was a small amount of Rs. 10,11,449/- as compared to the amount of investment in shares – It was not proved that this amount was earned on investment in the said company only – Following CCI Ltd. [2012 (4) TMI 282 - KARNATAKA HIGH COURT] - There could be no disallowance when shares were held not with an intention of earning dividend income - The acquisition of shares and placing share application money were in the course of business of the assessee - Decided in favour of assessee.
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