2016 (8) TMI 1521

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....has been preferred by the revenue against order dated 28/10/2014 passed by the Ld. CIT(Appeals)-21, Mumbai for the assessment year 2011-12, whereby the Ld. CIT(A) has directed the Assessing Officer to exclude the share application money of Rs. 13,73,00,000/- being part of investment made by the assessee for the purpose of computation of disallowance u/s 14A. 2. Brief facts of the case are that ....

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....circumstances of the case the Ld. CIT(A) erred in directing the Assessing Officer to exclude the share application money of Rs. 13,73,00,000/- being part of investment made by the assessee for the purpose of computation of disallowance u/s 14A, without appreciating the fact that the said investment would result in exempt incomes which may arise in future, however the expenditure pertaining to the ....

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....(iii) of the Income Tax Rules. Relying upon the decisions rendered by the ITAT Kolkata in ITA No. 267/kol/2013 (CO No. 29/kol/2013) dated 07/10/2015, in ITO vs. LGW Limited, decision dated 16/01/2013 passed by the ITAT, Mumbai Bench in Rainy Investments Pvt. Ltd. vs. ACIT in ITA No. 5491/Mum/2013 and decision dated 15/01/2014 passed by the ITAT Mumbai in Garware Wall Ropes Ltd. vs. ACIT submitted ....

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....de certain investment with an object of acquiring controlling stake in a group concern and not for earning any income out of investment, Assessing Officer was not justified in invoking provisions of section 14A, read with Rule 8D in order to disallow a part of incidental dividend income earned on said investment. Similarly in Rainy Investments Pvt. Ltd. vs. ACIT(supra) the Coordinate bench has hel....