2015 (7) TMI 1320

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....,36,94,050/- made under section 14A of the Income-tax Act, 1961 (hereinafter 'the Act') read with Rule 8D of the Income-tax Rules, 1962 (hereinafter 'the Rules'). 3. The brief facts of the case are that the assessee is a private limited company who declared current year loss of Rs. 1,27,54,359/-. The case was selected for scrutiny assessment and statutory notices were issued and the assessee cooperated with the assessment proceedings before the AO. The AO took note that the assessee company had made investment in the shares of M/s. High Land Meadows Pvt. Ltd. and M/s. Park Land Developers Pvt. Ltd. of Rs. 50 crores each. The total investment thus made and shown in the balance sheet of the said two companies was to the tune of Rs. 100 cror....

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.... of the Special Bench cited by the AO, as stated above, to support the decision of CIT (A). 7. We have heard both the parties and perused the records. We find that there is no quarrel that the assessee company has not received any dividend income or tax free income. On the said factual matrix, the issue before us is no longer res integra. The Hon'ble jurisdictional High Court, after taking notice of the Punjab & Haryana High Court judgments in the cases of CIT, Faridabad vs. M/s. Lakhani Marketing Incl. (ITA No.970/2008 decided on 02.04.2014, CIT vs. Hero Cycles Limited (323 ITR 518) and CIT vs. Winsome Textile Industries Ltd. (219 ITR 204), held as under :- "14. On the issue whether the respondent-assessee could have earned dividend i....