Section 14A applicable even if motive of assessee in acquiring shares is to obtain controlling interest in a company

Issue Under Consideration– Whether in law, the provisions of Section 14A of the Act are applicable to the expenses incurred by the appellant  towards interest and others on the loan borrowed for advances made to the subsidiaries in the course of business for its expansion ? Held by High Court– IN our view, the recent judgment of the Special  Bench in Bombay in ITO v. Daga Capital Management Pvt. Ltd., (2009) 312 ITR (AT) 1, is applicable to the facts of the present case. In this order, it has been held that section 14A is applicable even where the motive in acquiring the shares ...