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2013 (7) TMI 514 - AT - Income TaxDisallowance of interest expenses u/s. 14A - Held that:- As decided in case of CCI Ltd. (2012 (4) TMI 282 - KARNATAKA HIGH COURT) that if the assessee is a dealer of shares and securities then it cannot be said that such purchases of shares and holding of shares were for the purpose of earning of dividend income and hence, expenditure incurred in acquiring these shares cannot be disallowed u/s. 14A. In the present case, this is admitted position of fact that assessee is a dealer in shares and securities also noted by AO in his assessment order and nothing has been brought on record by CIT-DR of the Revenue to show otherwise. Since assessee is dealing in shares thus disallowance made by AO u/s. 14A on account of interest expenditure on proportionate basis cannot be sustained. In favour of assessee.
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