TMI Blog2017 (2) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... e sister concerns/group companies - Held that:- Direct the A.O. to exclude the investments made in foreign subsidiaries and investment made in companies which are strategic in nature while computing the disallowance u/s 14A of the Act in respect of administrative expenses. See Kotak Mahindra Capital Company Limited Versus DCIT [2015 (1) TMI 1289 - ITAT MUMBAI ] Investment made in the immovable property also does not earn any exempt income. Accordingly, direct the AO to exclude the investment in the immovable property while computing disallowance under Rule 8D. - ITA No. 3977/Mum/2016 - - - Dated:- 21-12-2016 - Shri R. C. Sharma, AM Assessee by : Shri Rajiv Khandelwal Revenue by : Shri S.R.Kirtane ORDER Per R. C. Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rivative segment, providing financial consultancy services. While computing disallowance u/s.14A, AO has taken into account the shares which were held as stock in trade and on which no dividend income was earned. In view of the decision of Jurisdictional High Court in case of India Advantage Securities Limited in ITA No.6711/Mum/2011 order dated 14/09/2012, I direct the AO to exclude the shares held as stock in trade. 6. No disallowance is attracted in relation to strategic investments made in the sister concerns/group companies where the assessee holds substantial stake is concerned, I find that the identical issue has been raised and decided by the co-ordinate bench of the Tribunal in the case of Kotak Mahindra Capital Co. Ltd. vs. DC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Oriental Structural Engineers P. Ltd. ITA No. 4245/De1/2011 ix) Garware Wall Ropes Ltd. vs. ACIT - ITA No. 5408/M/2012 7. In view of the above judicial pronouncements, I direct the A.O. to exclude the investments made in foreign subsidiaries and investment made in companies which are strategic in nature while computing the disallowance u/s 14A of the Act in respect of administrative expenses. 8. Investment made in the immovable property also does not earn any exempt income. Accordingly, I direct the AO to exclude the investment in the immovable property amounting to ₹ 1,45,78,820/- while computing disallowance under Rule8D. 9. In the result, appeal of the assessee is allowed in part in terms indicated herein above. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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