TMI Blog2011 (7) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... iew taken in the case of A.C.I.T vs. Jupiter Corporate Services Limited [2009 (7) TMI 1100 - ITAT AHMEDABAD] it concluded that in absence of any material, it was evident that no expenditure had been incurred by way of interest which could be related to dividend income, nor was brought any material to suggest that the borrowed funds were utilized for investment in shares - While there was no disall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer in case of the assessee - respondent for the A.Y 2001-2002. The assessee, which made total investment in shares amounting Rs.1,20,25,800/= had shown dividend income of Rs.20,000/= on 500 Equity Shares of Bank of Baroda. On the borrowed capital, finance charges were worked out to be Rs 38,90,721/=. The interest payment to the extent of investment made in shares were disallowed by the Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be decided by upholding the version of the Tribunal, for the reasons to be recorded hereinafter. As can be seen from the treatment accorded to the said issue by the Tribunal, the Tribunal decided on the basis of provisions contained in Section 14A of the Income-Tax Act, 1961 {"Act" for short} which states that no deduction could be allowed in respect of expenditure incurred in relation to in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oncluded that in absence of any material, it was evident that no expenditure had been incurred by way of interest which could be related to dividend income, nor was brought any material to suggest that the borrowed funds were utilized for investment in shares. While there was no disallowance of interest paid on borrowed funds was made in the preceding Assessment Year, there was no material availab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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