Please refer the latest two case laws on section 14A which are against the assessee. please take necessary precautinory measures at the time of assessments & appeals.
S. 14A --Income--Computation--Disallowance of expenditure related to exempt income--Interest attributable to investment in shares--No evidence that loans not utilized for acquisition of shares--No new shares purchased in immediately preceding years--Not relevant--Disallowance of proportionate part of interest attributable to investment in shares dividends from which exempt--Justified-- Dhanuka and Sons v. CIT (Cal) . . . 319
----Interest on borrowed capital--Expenditure in relation to income not forming part of total income--Borrowed funds utilised for acquisition of shares in company of which assessee acquired controlling interest--Acquisition of shares in form of investment and only benefit is dividend income--Assessee not entitled to deduction of interest-- CIT v. Smt. Leena Ramachandran (Ker) . . . 296
S. 14A --Income--Computation--Disallowance of expenditure related to exempt income--Interest attributable to investment in shares--No evidence that loans not utilized for acquisition of shares--No new shares purchased in immediately preceding years--Not relevant--Disallowance of proportionate part of interest attributable to investment in shares dividends from which exempt--Justified-- Dhanuka and Sons v. CIT (Cal) . . . 319
----Interest on borrowed capital--Expenditure in relation to income not forming part of total income--Borrowed funds utilised for acquisition of shares in company of which assessee acquired controlling interest--Acquisition of shares in form of investment and only benefit is dividend income--Assessee not entitled to deduction of interest-- CIT v. Smt. Leena Ramachandran (Ker) . . . 296
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