9911796707
TMI Blog2013 (12) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... e balance amount was deployed in the company from which the assesee derived dividend income - Held that:- The assessee has clearly accepted that money borrowed was utilized for purchase of shares - The assessee earned divedend income which was exempted form tax - The interest has been incurred by the assessee for earning of the dividend income – Decided against assessee. - ITA No.185/Kol/2012 - - - Dated:- 7-2-2013 - Sri P. K. Bansal, AM And Sri George Mathan, JM,JJ. For the Appellant : Shri Subash Agarwal For the Respondent : Shri Asoke Kumar Dey, Sr. DR ORDER Per Bench This is an appeal filed by the assessee against the order of the ld. C.I.T. (A)- Central-III, Kolkata dated 24.01.2011. The appeal is barred by limit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de the addition of Rs.35,63,996/- as deemed dividend in the hands of the assessee. The assessee went in appeal before the ld. CIT(A). The ld. CIT(A) confirmed the order of the AO as per the findings given in paras 5 and 6 of its order. 5. Before us, the ld. AR vehemently contended that the assessee was having the current account with the company to whom the payments were regularly made or received and such payments are not in the nature of advance. Since the payments are not advance or loan therefore the provisions of section 2(22)(e) of the Act are not applicable. 6. The ld. DR, on the other hand, relied on the orders of the authorities below. 7. We have heard the rival submissions and carefully considered the same. In our opinion, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee amounting to Rs.64,798/- but the funds which was taken on loan was invested in the shares. The assessee had derived dividend income on these shares to the extent of Rs.4,377/-. The interest was claimed by the assessee as deduction while computing the taxable income. The AO disallowed the same to the extent of Rs.64,798/- by invoking the provision of section 14A of the IT Act. Then the matter went to the ld. CIT(A) who confirmed the order of the AO. 10. We have heard the rival submissions and carefully considered the same. Before us, even though the ld. AR vehemently contended that the provisions of section 14A of the Act are not applicable in the case of the assessee to which he had not denied that the money borrowed except Rs.51, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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