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2016 (4) TMI 857 - AT - Income TaxDisallowance u/s.14A - Held that:- Since in the instant case the own capital and free reserves of the assessee company is much more than the investment in shares of group companies and associate concerns and since the assessee has not received any dividend income during the year, therefore,we are of the considered opinion that no disallowance u/s.14A on account of interest can be made. We accordingly set aside the order of the CIT(A) on this issue. However, the incurring of administrative expenses for investment in the share cannot be ruled out. The AO has already made an addition of ₹ 12,000/- on estimate basis, therefore, the same has to be upheld. Accordingly, the addition sustained by the CIT(A) to the extent of ₹ 1,90,70,249/- u/s.14A is directed to be deleted. - Decided partly in favour of assesse Disallowance of depreciation, interest and administrative expenses - purchase of flat in the name of director by the company - Held that:- AO has accepted the ownership of the property in the hands of the company and for the purpose of business. - Claim of the assessee allowed - Decided in favor of assessee.
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