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2018 (4) TMI 933 - AT - Income TaxDisallowance u/s 14A - Held that:- In view ratio of decision of Hon‟ble Supreme Court in the case of Maxopp Investment Limited (2018 (3) TMI 805 - SUPREME COURT OF INDIA) we hold that Section 14A of the 1961 Act is applicable even if the assessee had made strategic investments in subsidiary companies and the same cannot be excluded - decided against the assessee. Section 14A disallowance applicability - investments in "IDFC Cash fund - Super Inst Plan C – Growth‟ - contentions of the assessee Sh. Hiro Rai, the growth funds invested by the assessee does not declare dividend which could be claimed as an exempt income nor any other exempt income arises from the said growth funds, and hence question of applicability of Section 14A does not arise - Held that:- It is critical and important for the AO to go through the scheme of issue of IDFC Cash fund - Super Inst Plan C – Growth fund which was issued by IDFC , in which the assessee has claimed to have invested ₹ 72.64 crores, and then to arrive at conclusion whether the assessee is entitled to receive any exempt income from said growth fund issued by IDFC as per terms of the scheme . Thus after evaluation of terms and conditions of the scheme to arrive at conclusion as to applicability of Section 14A r.w.r. 8D2(iii) of the 1962 Rules . The assessee is directed to file the entire scheme of issue of IDFC Cash fund - Super Inst Plan C – Growth, before the AO. The matter is set aside and restored to the file of the AO for fresh adjudication on merits in accordance with law after considering the submissions of the assessee/evidence filed by the assessee which shall be admitted by AO in the interest of justice
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