2019 (11) TMI 1194

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.... Mr. A.R. Malhotra a/w. Mr. N.A. Kazi for the Appellant. Mr. Madhur Agarwal and Mr. P.C. Tripathi and Mr. Amit Mathur I /b. Raj B. Darak for the Respondent. P.C. :- Heard. 2. This Appeal relates to Assessment Year 2008-09. This Appeal under Section 260A of the Income Tax Act, 1961 (Act) challenges the order of the Income Tax Appellate Tribunal (Tribunal) dated 23 November 2016.  ....

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....vestment and investment not yielding dividend income without appreciating the fact that the Hon'ble High Court of Karnataka in the case of United Breweries Ltd. v/s. DCIT Central Circle-2(3), Bangalore [2016) 72 taxmann.com 102 (Karnataka) has held that Section 14A of the I.T. Act, 1961 is applicable even where motive in acquiring shares is to obtain controlling interest in companies ?" 4. Re :....

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....Respondent had obtained a term loan of Rs. 500 crores which was used for business purpose. The interest attributable to the term loan of Rs. 45.09 crores. The balance interest of Rs. 23 lakhs attributable to earning except income was disallowed by application of Section 14A r/w. Rule 8D of the Rules to the extent of Rs. 26.64 lakhs. The assessee accepted the same. (c) Being aggrieved by t....

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....the Act cannot be more than exempt income. (e) In the above view, Question (A) does not give rise to any substantial question of law. Thus not entertained. 5. The Appeal is admitted on the substantial question of law as (B) above. 6. Prima-facie, this issue seems to be concluded against the Respondent - assessee and in favour of the Revenue by the decision of the Apex Court in Maxop....