No Section 14A disallowance for dividend earned on Strategic Investment in Subsidiary Company

DCIT Vs M/s Development Constultant Pvt. Ltd. (ITAT Kolkata) Assessee has made strategic investment in its subsidiary company to control the interest in the company and not with the object to earn dividend income. The dividend income is merely incidental from the subsidiary company. Therefore no disallowance of whatsoever can be made in respect of dividend income earned from the subsidiary company. In holding so, we find support and guidance from the order of the Hon’ble Tribunal in the case of Electrosteel Casting Limited Vs. DCIT reported in 58 ITR (Trib) 5 wherein it was held that no disa...