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2013 (11) TMI 11 - AT - Income TaxDisallowance u/s 14A of the Income Tax Act – Held that:- Reliance has been placed on the case of M/s Spray Engineering Devices Ltd [2012 (7) TMI 587 - ITAT CHANDIGARH], which is squarely applicable in the present case - The decision making of a business man by way of strategy planning in allied line of business is a decision made in the course of carrying on the business and the Assessing officer cannot sit in judgment seat to comment upon the same. One the assessee has been found to have made a business investment by way of shares in related line of business, the said investment though held by way of shares in the said company cannot be subjected to disallowance under section 14A of the Act, which in any case is relatable to disallowance of the expenditure out of the exempt income earned by the assessee, by way of its investment in shares of other company. In the facts of the present case the investment was purely of business nature as the company in which the amount was invested was a loss making company and there was no question of earning any dividend income from such investment. In the totality of the facts and circumstances of the case, no merit in the order of the authorities. The assessee acquired controlling interest in those companies just to run these companies properly - Till date no dividend has been earned by the assessee as assessee is doing the business in these companies from the amounts invested through shares.- Therefore, no question of any disallowance u/s 14A of the Income Tax Act – Decided in favor of Assessee.
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