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Disallowance u/s 14 a of itact

RKSKLOKESH (CHARTERED ACCOUNTANT) (25 Points)

24 June 2016

Whether investment in partnership firms will be considered for disallowance u/s 14 a of IT Act.

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Harshit Kabra (INVESTOR) (Student CA final) (1113 Points)
Replied 25 June 2016

dear Lokesh,
see in case of HOLCIM INDIA PVT LTD. it was held that expenditure on investment by holding company are not disallowable expenditure u/s 14a, even if such holding company not connecting / commencing any business such expenditure is fully allowable as deduction.
so any expenditure by u on making such investment shall be allowed u, even if ur contention is only getting dividend/intrest from it.
hope it will help u
feel free to ask further
harshit