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2017 (2) TMI 1418 - AT - Income TaxDisallowance u/s 14A - investment made by the assessee in tax free securities comprise substantial amount of investment made in the group companies for strategic reasons - limited prayer of the assessee is that for making disallowance u/s 14A, this strategic investment should be excluded and disallowance can be made only on the balance amount of investment placing reliance on KOTAK MAHINDRA CAPITAL COMPANY LIMITED [2015 (1) TMI 1289 - ITAT MUMBAI], JM FINANCIAL CONSULTANTS PVT. LTD. (NOW KNOWN AS JM FINANCIAL INSTITUTIONAL SECURITIES P. LTD.) [2015 (11) TMI 1061 - ITAT MUMBAI] and CHEMINVEST LIMITED [2015 (9) TMI 238 - DELHI HIGH COURT] HELD THAT:- This issue has been decided in favour of the assessee in the judgements relied upon before us. Therefore, accepting the request of the assessee, we send this issue back to the file of AO for giving opportunity to the assessee to submit details of strategic investments. The Assessee shall place on record requisite details to satisfy the AO about the strategic investment. The AO shall exclude the amount of strategic investments and the disallowance u/s 14A shall be made on the balance amount of investment.
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