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2022 (3) TMI 1120 - ITAT PUNEAddition u/s 14A - As argued that the disallowance under Rule 8D for the purpose of Section 14A should not exceed the dividend income - HELD THAT:- In the present case, we find that the assessee earned only ₹ 100/- as dividend income and the AO made disallowance of ₹ 3,16,488/- which is evidentay exceeds the dividend income. Therefore, the order of CIT(A) is not justified in confirming the disallowance made by the AO exceeding the dividend income. In the light of the decision of Hon’ble High Court of Bombay in the case of M/s. Nirved Traders Pvt. Ltd. [2019 (4) TMI 1738 - BOMBAY HIGH COURT] we deem it proper to hold the disallowance as confirmed by the CIT(A) is not maintainable and it is not justified. Therefore, we direct the AO to restrict the disallowance for the purpose of Section 14A of the Act to the dividend income earned and the said disallowance shall not exceed the dividend income. Thus, the grounds raised by the assessee are allowed.
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