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2014 (1) TMI 1229 - AT - Income TaxDisallowance made u/s 14A of the Act r.w. Rule 8D of the Rules - Disallowance of expenses incurred in relation to the exempt income – Income received as dividend on shares – Held that:- After going by the magnitude of the investment activity of the assessee and the quantum of exempt income earned, certain common expenses incurred on office and administration incurred by the assessee should be attributable partly to the investment activity of the assessee which resulted in substantial exempt income - Relying upon Godrej & Boyce Manufacturing Co. Ltd. Vs. DCIT [2010 (8) TMI 77 - BOMBAY HIGH COURT] - The manner and method of computing such in-direct expenses attributable to the earning of exempt income is now provided in Rule 8-D and the same being applicable to the year under consideration i.e 2008-09 - thus, the disallowance made by the A.O. u/s 14A of the Act by applying the said Rule was fully justified – the order of the CIT(A) confirming the disallowance made by the A.O. u/s 14A read with Rule 8-D of the Income tax Rules 1962 upheld – Decided against Assessee.
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