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TMI Blog2011 (1) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... was financed, in the context of applicability of Section 14A of the Act, no interference is called for at this stage - The Assessing Officer has to go into the question of admissibility of expenditure in relation of income which does not form part of the total income as required under Section 14A(1) of the Act - The question is accordingly answered against the assessee. - I.T.A. No.290 of 2009 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and does not form part of total income under the Act? 2. The assessee is engaged in the business of banking and financing. It made investment in shares and received dividend income, which was exempt from income tax under Section 10(33) of the Act. The Assessing Officer did not allow the expenditure claimed by the assessee in view of Section 14A of the Act, rejecting the claim of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was established between the investment made in shares and the amount borrowed. The business of the assessee is indivisible business of banking and financing and unless nexus of borrowing, on which interest was paid, was established with investment in shares, the disallowance under Section 14A of the Act was not permissible. 5. On the other hand, learned counsel for the revenue submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court in Godrej Boyce Mfg. Co. Ltd. v. D.C. of Income Tax another (2010) 43 DTR Judgments 177. 6. In view of the fact that the question whether expenditure claimed by the assessee on the payment of interest on borrowed capital was admissible, having been remanded in the context of applicability of Section 14A of the Act, no interference is called for at this stage. The Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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