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2018 (12) TMI 60 - BOMBAY HIGH COURTAddition of forfeiture of warrants u/s 28(iv) - Held that:- On a plain reading of Section 28 (iv) of the Income Tax Act, it appears that for the applicability of the said provision, the income which can be taxed shall arise from the business or profession. Also, in order to invoke this provision, the benefit which is received has to be in some other form rather than in the shape of money. If that is because of the remission loan liability as in this case, then, this section would not be attracted. - Decided in favour of the Assessee and against the Revenue Addition u/s 14A - Held that:- Revenue may be correct in pointing out that in the context of present case which concerns the assessment year 2009-10, Rule 8D was already brought in the statute. However, a pre-condition to applicability to Rule 8D is that as per Sub-section 2 of Section 14A, the Assessing Officer having regard to the accounts of the assessee is not satisfied with the correctness of the claim of the assessee in respect of the expenditure in relation to income which does not form part of the total income under the Act. When we find that consistently it is a finding of the fact in case of assessee over a period of time that the assessee had own sufficient funds for making investments in shares, the disallowance of interest expenditure under Section 14A. Tax Appeal dismissed.
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