When shares are not dividend bearing, no tax free income would arise. Sec. 14A would not applicable

Fact of the Case In the balance sheet of the assessee, A.O. noted that there was a term loan of Rs.7,58,09,730/- from Axis Bank. Further the assessee has invested in fully paid equity shares of Pollen Dealcom Pvt. Ltd. amounting to Rs.6 crores. Beside there were other investment also which consists of fully paid equity shares of Sun Rise Tie-up Pvt. Ltd. amounting to Rs.90,225/- and Reliance Medium Term Fund-Daily Dividend Plan amounting to Rs.1,25,24,400/-. The assessee has shown dividend income of Rs.2,26,517/- under the head “other income”. The auditor had shown in the tax audit report ...