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2014 (9) TMI 511 - AT - Income TaxDisallowance u/s 14A r.w Rule 8D Interest expenses Held that:- CIT(A) was rightly of the view that the AO has erred in invoking rule 80 in the present case without establishing any nexus between the borrowed funds and the investment - the AY under consideration is 2009-10 wherein the Rule 8D is applicable - the AO has not determined the claim of the assessee regarding expenses whether there were any expenditure related to the earning of the exempted income - Rule 8D can be applied where the AO is not satisfied with the claim of the assessee that no expenditure has been incurred to earn the exempted income the AO has not fulfilled the onus of recording the findings with regard to the expenditure incurred towards the income to be earned which is exempted from the tax thus, the CIT (A) was justified in granting the relief to the assessee by holding that when there is no nexus between the borrowed fund and investment made then no disallowance needs to be made as no interest bearing fund utilized by the assessee for making the investment the order of the CIT(A) is upheld Decided against revenue.
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