Search Results For: strategic investment


Apollo Tyres Ltd vs. ACIT (ITAT Cochin)

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DATE: January 10, 2017 (Date of pronouncement)
DATE: January 11, 2017 (Date of publication)
AY: 2010-11
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CITATION:
S. 37(1): The loss on sale of shares of a wholly-owned subsidiary is allowable as a business loss if the investment in the subsidiary was made for commercial purposes

The objective of ATAG was undertaking sales and marketing related activities for the brand of the appellant in Singapore. The said factual assertion has not been rebutted by the AO in the impugned assessment order. There is nothing on record to show that the said subsidiary company was doing any activity completely independent and unrelated to the activities carried out by the appellant company. Thus, the claim of the appellant that the investment was made for commercial purposes and not for purpose of accretion of investment cannot be rejected

Posted in All Judgements, Tribunal

United Breweries Limited vs. DCIT (Karnataka High Court)

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DATE: May 31, 2016 (Date of pronouncement)
DATE: August 17, 2016 (Date of publication)
AY: 2004-05
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CITATION:
S. 14A is applicable even where the motive of the assessee in acquiring the shares is to obtain controlling interest in a company and not to earn dividends

The question arose whether s. 14A applies to a case where the motive of the assessee is to acquire controlling interest in a company and not to earn dividends. The Tribunal followed the judgement of the Special Bench in ITO v. Daga Capital Management Pvt. Ltd (2009) 312 ITR (AT) 1 and held that section 14A is applicable even where the motive in acquiring the shares was to obtain controlling interest in the companies. The Tribunal upheld in principle the applicability of section 14A but remanded the matter to the Assessing Officer to ascertain from the facts of the case as to how much interest bearing borrowings was utilized to acquire shares in the companies

Posted in All Judgements, High Court

Interglobe Enterprises Ltd vs. DCIT (ITAT Delhi)

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DATE: April 4, 2014 (Date of pronouncement)
DATE: October 16, 2014 (Date of publication)
AY: 2008-09 & 2009-10
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CITATION:
No disallowance u/s 14A & Rule 8D can be made towards exempt income earned on strategic investments

The assessee had made significant investments in the shares of subsidiary companies which are definitely not for the purpose of earning exempt income. Strategic investment has to be excluded for the purpose of arriving at disallowance under Rule 8D(iii). The

Posted in All Judgements, Tribunal