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2010 (12) TMI 976 - AT - Income TaxDeductibility of interest - disallowance u/s 14A - Held that:- Remit the matter back to the file of the Assessing Officer, firstly, for recording a categorical finding as to whether or not the assessee is engaged in investment in shares for the purpose of holding and controlling interest, and thereafter, for deciding the claim for admissibility of deduction in accordance with law, inter alia, including the law laid down by the hon'ble jurisdictional High Court in the case of Srishti Securities (P.) Ltd. (2009 (1) TMI 408 - BOMBAY HIGH COURT). As regards disallowance under section 14A - Held that:- AO's powers to make disallowance under section 14A are not fettered on that count, and except for this variation, the observations made by us while dealing with the assessment year 2001-02 will apply mutatis mutandis for these years as well. We may add that while deciding the issue regarding disallowance under section 14A, the Assessing Officer will, inter alia, bear in mind the principles laid down in the case of Godrej & Boyce Mfg. Co. Ltd. v. Dy. CIT [2010 (8) TMI 77 - BOMBAY HIGH COURT]. With these directions, the matters for the assessment years 2002-03 to 2004-05 are also remitted to the file of the Assessing Officer for fresh adjudication, and the appeals are, accordingly, allowed for statistical purposes.
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