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2014 (7) TMI 1269 - ITAT NEW DELHIDisallowance u/s 14A - expenditure in relation to exempt income - Held that:- The expenditure, which has to be disallowed, has to be in relation to exempt income. The assessee before us has demonstrated that expenses incurred by it, to a large extent pertain to amalgamation of ten companies. This expenditure cannot be attributable to the earning of exempt income. This expenditure has to be excluded while computing disallowance u/s 14A with regard to administrative expenses. As a detailed verification is to be done, we set aside the issue to the file of the Assessing Officer for fresh adjudication in accordance with law. It is for the assessee to make its contentions before the Assessing Officer. The Jurisdictional High Court in the case of Maxopp Investment Ltd. (2011 (11) TMI 267 - Delhi High Court ) has clearly laid down that no disallowance can be made u/s 14A of the Act, if no expenditure is incurred in relation to the exempt income. This proprietary has to be applied by the Assessing Officer. - Decided in favour of assessee for statistical purposes.
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