2018 (10) TMI 919

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....cate For the Respondent : Shri AR.V. Sreenivasan, JCIT ORDER PER A. MOHAN ALANKAMONY, AM:- This appeal by the assessee is directed against the order passed by the learned Commissioner of Income Tax(Appeals)-3, Chennai, dated 29.09.2017 in ITA No.165/16-17/A-3 for the assessment year 2014-15 passed U/s. 250(6) r.w.s. 143(3) of the Act. 2. The assessee has raised several grounds in it....

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.... towards income earned from its wholly owned subsidiary in Hong Kong. On appeal the Ld.CIT(A) confirmed the addition of Rs. 5,05,44/- made by the Ld.AO by invoking the provisions of Section 14A r.w.r 8D of the Rules, against which the assessee is in appeal before us. 4. At the outset, we find that with respect to disallowance U/s.14A of the Act, we had held in ITA Nos.1729 & 1730/Chny/2016 in t....

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....re incurred towards earning exempt income cannot allowed as deduction from the taxable income of the assessee. In the case of the assessee, it is evident that for the process of decision making as to which shares the assessee has to invest, dis-invested, and at what point of time etc., will involve cost. Such expenditures incurred towards earning dividend income which is exempt from tax cannot be ....

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....ncome though it has made heavy investments during the previous year or the earlier years, but the assessee is bound to incur cost for acquiring / maintaining /disinvesting such investments. Hence it cannot be inferred that the dividend income would be directly proportional to the expenditure incurred on the investment earning exempt income. Therefore we do not find any merit in the order of the Ld....