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2024 (3) TMI 199 - AT - Income TaxDisallowance u/s 14A - Addition of expenditure attributable to exempt dividend income - HELD THAT:- As decided in assessee' own case [2014 (6) TMI 1041 - ITAT AHMEDABAD] the matter is set aside to the file of AO to examine the facts and figures of the case in the light of our observations made above in order to arrive at a final conclusion as to whether disallowance u/s 14A is to be made and if so, then the amount thereof which in no case should exceed the exempted income earned by assessee during the year under appeal. It is needless to mention that AO shall allow reasonable and sufficient opportunity of hearing to the assessee before adjudicating the same. These grounds are allowed for statistical purposes. Characterization of receipts - Treatment of interest income from staff loans and advances, interest income from other loans and advances and miscellaneous income - HELD THAT:- Though interest on other loans and advances has been contended as was of business exigencies on the assessee, it has not been able to be demonstrated by the assessee that the nature of this income is from business activities particularly when separate head for interest income in the return of income has been shown which is to be included in other income. Neither the miscellaneous income has been able to be shown from routine business activities of the assessee. The assessee failed to demonstrate that the income which is not revenue from operations as required to be treated in the other heads which includes income from other sources and capital gain. The impugned amount of 33.23 lakhs on account of interest income from other loans and advances and miscellaneous income of 9.46 lakhs are rightly been treated as income from other sources. We, therefore, quash the order passed by the Ld. CIT(A) in granting relief to the assessee and confirm the order passed by the AO. Hence, this ground of appeal raised by the Revenue is allowed. Disallowance u/s. 14A for the purpose of computation of book profit u/s. 115JB is hereby deleted.
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