TaxTMI 
TaxTMI 
TaxTMI 
2016 (6) TMI 1164
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....g to the same assessee, hence these were heard together and are being disposed of by this common order. First we take appeal of the assessee for A.Y. 2006-07. ITA No.6236/M/2013 (for A.Y. 2006-07) 2. The assessee, in this appeal, has taken two effective grounds of appeal. By way of first ground the assessee has agitated the reopening of the assessment under section 147 of the Act. In the second ground of appeal the assessee has agitated on merits the disallowance made under section 40(a)(ia) to the tune of Rs. 19,85,114/- for non deduction of tax at source. The Ld. A.R., at the outset, has stated that the issue on merits is now covered in favour of the assessee by the decision of the Hon'ble Supreme Court. The issue is relating to th....
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.... view of the decision of the Hon'ble Supreme Court, no disallowance is attracted in relation to the transaction charges paid to the stock exchange. The issue is thus covered in favour of the assessee on merits by the decision of the Hon'ble Supreme Court (supra). This issue is accordingly decided in favour of the assessee. Since the sole issue taken by the assessee on merits is covered in his favour by the decision of the Hon'ble Supreme Court, hence under such circumstances both the Ld. Representatives of the parties agreed that the issue regarding the validity of reopening of the assessment at this stage has become academic in nature as ultimately there will not be any resultant addition in view of the fact that the issue on m....
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.... under section 14A of the Act at Rs. 10,14,312/- and disallowed the same on account of expenditure incurred for earning of exempt income. The Ld. CIT(A) confirmed the said disallowance. 9. At the outset, the Ld. A.R. before us has stated that the assessee had strategic investments in the group companies for having control over them which was a business decision; that the investments were not made for earning of any tax exempt income; the tax exempt income earned, if any, was just incidental to the above activity. 10. At the outset, the Ld. A.R. of the assessee has invited our attention to page 11 of the paper book which is the detail of investments to show that 99.98% of the total investments were made in the group companies. The assessee....
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....sallowance u/s 14A of the Income Tax Act, 1961. It was argued by the learned A.R. that the assessee has investments in companies which are its group companies where the assessee holds substantial stake. The Id. A.R. submits that strategic investments, per se do not require any day today monitoring as they are inherently long term in nature. No expenditure on day- to-day basis is incurred for managing those investments. Therefore, strategic investment should be excluded for attributing administrative expenses for making disallowance u/s 14A of the Act. The ld. A.R. has placed reliance on the following decisions:- i) HSBC Securities and Capital Markets (I) P. Ltd. - ITA No. 3186/M/08 ii) Zenstar Technologies Ltd. - ITA No. 4538/M/05 iii....
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.... where the investment in shares of sister/subsidiary company is made to have control over that company and further that such an investment was accordingly part of the business activity of the assessee, in that event the assessee is entitled to deduction of interest paid on the borrowed amount under section 36(1)(iii) of the Act. We, further find that recently the Hon'ble Delhi High Court in the case of "Eicher Goodearth Ltd. vs. CIT" (2015) 60 taxman.com 268 (Del.) has held that if the expenditure is incurred for the purpose of promotion of business-more specifically to retain control or as part of his strategic investment of the assessee company, such expenses by way of interest out go would have to be treated as allowable under sectio....