2015 (10) TMI 2718

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....sessee has filed this appeal challenging the order dated 09-04-2012 passed by Ld CIT(A)-17, Mumbai for assessment year 2008-09, wherein following issues have been urged:- (a) Disallowance of finance charges of Rs. 6,54,509/- (b) Disallowance u/s 14A of the Act. 2. We heard the parties and perused the record. The assessee derives income from salary, income business, income from long term c....

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.... years and the said loan was used for investing in group companies and for making other investments. The loans taken from various banks were used for repaying part of loan taken from Vithal Kamat (HUF). Accordingly he submitted that the interest expenditure has got connection with the activities carried on by the assessee. However, the Ld D.R pointed out that the interest expenditure is not relate....

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....y instalments and they have been utilized for all the purposes. Thus, the exact utilization of loans taken from Vithal Kamat (HUF) could not be proved at this stage. Hence, as submitted by Ld D.R, the nexus of interest expenditure with the income earned by the assessee could not be established by the assessee. Under these set of facts, we are of the view that the Ld CIT(A) was justified in confirm....

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....imed by the assessee is only professional charges of Rs. 3,15,500/-. Other expenses consisted of membership fee, profession tax and depreciation. Accordingly he submitted that the assessee has not claimed any expenditure which could be related to the dividend income. Accordingly, he submitted that the expenditure of Rs. 2,81,826/- computed in terms of Rule 8D(2)(iii) is not warranted at all. 7.....