S. 14A Mere incorporation &receipt of share application money cannot be said to be commencement of business

That mere incorporation and receipt of share application money cannot be said to be commencement of the business. Neither any interest income has been earned from against advances nor any goods or services been obtained. Moreover, the assessee has also not disclosed any dividend income from its investment . Therefore, he disallowed the expenses amounting to Rs. 8,75,35,452/- claimed in the P&L A/c. Held that dis allowances made u/s 14A were unwarranted as assessee has not invested in shares for earning of dividend but acquired the controlling interest in the respective companies for doing ...