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2021 (2) TMI 933 - ITAT DELHIDisallowance u/s 14A r.w.r 8D - assessee has claimed deduction of expenses in relating to income which is exempt from tax - whether the dividend income earned from overseas joint-venture OMIFCO-OMAN can be subjected to disallowance under section 14A - assessee had received dividend income from its overseas joint-venture OMIFCO-OMAN - According to the AO, the assessee is effectively not paying any tax on this income either in the source country or in India and thus dividend income for all purposes is exempted from tax - HELD THAT:- Tribunal in the case of the assessee for assessment years 2008-09 [2018 (5) TMI 1035 - ITAT DELHI] wherein the Tribunal has decided to exclude the investment in OMIFCO-Oman for the purpose of the computing disallowance in terms of Rule 8D(2)(iii) of the Rules. Dividend income from M/s OMIFCO-Oman is not in the nature of the exempted income, respectfully following the finding of the Tribunal, we uphold the finding of the Ld. CIT(A) of computing disallowance under section 14A of the Act after excluding the dividend income from M/s OMIFCO-Oman. We do not find any infirmity in the order of the Learned CIT(A) on the issue in dispute, and accordingly, we uphold the same. The ground of the appeal of the Revenue is accordingly dismissed.
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