Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (7) TMI 1567 - ITAT MUMBAIDisallowance u/s 14A r.w.r. 8D(2)(iii) - investments made by assessee were of strategic nature as these were not made with the purpose of earning any dividend on the investments but were prompted by strategic considerations in order to gain control over these subsidiaries/sister concern and thus should not be considered for the purpose of calculating the disallowance u/s 8D(2)(iii) - HELD THAT:- Assessee has made investments in the subsidiary companies to the tune of ₹ 16.61 crores which in our opinion should not be considered for the purpose of working out the disallowance under section 14A read with rule 8D (2)(iii). Respectfully following the ratio of INTERGLOBE ENTERPRISES LTD. [2014 (4) TMI 269 - ITAT DELHI] set aside the order of CIT(A) and direct the AO to verify the strategic investment and recalculate the disallowance accordingly by not considering the investments made in subsidiary companies/sister concern. - Appeal of the assessee stands allowed for statistical purposes.
|