No Disallowance U/s. 14A on strategic investments out of Commercial expediency

Dy. CIT Vs. Alpha G. Corp Development Ltd. (ITAT Delhi) The intention of the appellant to invest in the subsidiary companies was never to earn dividend but the same was made to acquire land to meet the minimum requirement of Haryana Town and Country Planning Act and to overcome the restrictions put by the Haryana Urban Land Ceiling Act, 1995. The investments in the subsidiaries were for development of business and for the commercial expediency. These investments were to get the strategic advantage to gain the benefit of synergies in the different markets. Therefore, dis allowance under section...