2016 (10) TMI 1278

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....s 14A of the I.T. Act, 1961 on account of interest paid on loans taken for share application money Rs. 1,60,00,000/- given to M/s. Career Point Info System Ltd. 2. That the order of the ld. CIT(A), confirming the addition made by the AO is arbitrary, whimsical capricious, perverse and against the law and facts of the case. The order of the ld. CIT(A) in this regard deserves to be set aside and addition made by the AO deserves to be deleted. 3. The assessee prays for leave to add, to amend, to delete or modify the all or any grounds of appeal on or before the hearing of appeal. 2.1 The Ground Nos. 2 and 3 of the assessee are general in nature which does not require any adjudication. 3.1 As regards Ground No. 1 raised ....

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....lso placed reliance on certain judicial decisions to substantiate its contentions. 4.5 Having considered the material placed on record, I find that appellant has reiterated the submissions filed before the AO and has not been able to place an evidence to controvert the findings given by the AO in the order. Appellant has failed to reubut or produce the evidence that intention was to earn profits from the investment made in these share during the year under consideration as no sale of such shares was made even in the subsequent period. The shares of the investee company were not listed on any Stock Exchange. Further, AO has found that share application money was returned back on28-08-2008. The judicial decisions cited by the appella....

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....he AO noted that the assessee had paid interest @ 9% on the investment made against the share application money. The bank statement of the assessee revealed that the payment of Rs. 80,00,000/- was made by the assessee on 13.2.2008 and another payment of Rs. 80,00,000/- was made on the same date against the share application money of M/s. Career Point Infosystem Ltd. No shares were allotted against the investment in share application money. The amount of Rs. 1,60,00,000/- was returned back on 28.8.2008. The AO, therefore, worked out the interest @ 9% on the investment made against share application money from 1.4.2008 to 28.8.2008 at Rs. 6,00,000/- and disallowed the same under section 14A. It is the undisputed fact that the assessee has not....