2011 (7) TMI 519

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....lowances made by the Assessing 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 share....

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....perusal of the record, this Tax Appeal deserves to 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 allow....

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.... A.C.U.I.T vs. Jupiter Corporate Services Limited, 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 disallowance of interest paid on borrowed funds was made in the p....