Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2013 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (1) TMI 809 - HC - Income TaxDisallowance of ₹ 6,62,50,000/- u/s. 14A - Interest expenditure - Held that:- there has to be nexus between the borrowed fund and investment made and the same can be established only when it is shown that interest free funds were not available with the assessee - there was sufficient interest free funds available with the assessee and Department failed to establish the link between the borrowed fund and the investment made by the assessee in the equity shares, addition made on account of disallowance of ₹ 6,62,50,000/- by AO has been deleted - assessee had not used borrowed funds, for the purpose of investment in equity shares - Tribunal has allowed the interest free expenses incurred for earning the dividend and allowed the deduction under Section 80M
|