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2022 (2) TMI 338 - AT - Income TaxDisallowance of interest expenses u/s.36(1)(iii) - whether the investment was made by the assessee to have controlling interest in the companies? - HELD THAT:- Admittedly, the borrowed fund has been invested by the assessee by acquiring the shares of 5 different companies which are capable of generating only dividend income which is exempt from the tax. We note that the investments was made by the assessee in the companies in order to have controlling stake which is considered as for the purpose of the business. Therefore, there cannot be any disallowance of interest expenses. The facts of the present case are identical to the facts of the case as discussed in M/S. PHIL CORPORATION LTD., [2011 (6) TMI 187 - BOMBAY HIGH COURT]. Accordingly, we set aside the findings of the Ld. CIT(A) and direct the AO to delete the addition made by him. Hence the ground of the appeal of the assessee is allowed.
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