No Disallowance U/s. 14A r.w. Rule 8D for Investments in subsidiaries

The first issue in the appeal of the assessee relates to dis-allowance made u/s. 14A r.w.r. 8D. The Assessing Officer has made dis-allowance to the tune of Rs. 4,32,66,500/-. The contention of the assessee is that the assessee has earned dividend income of Rs. 4.6 Lakhs which is fully exempt u/s. 10(34) of the Act. The assessee has made voluntarily dis-allowance of Rs. 45,927/- u/s. 1 4A. The assessee has made fresh investments to the tune of Rs. 9.4 Crores during the year. The Assessing Officer held that the investments have been made from the fresh secured loans obtained during the year by t...