TMI Blog2018 (4) TMI 1804X X X X Extracts X X X X X X X X Extracts X X X X ..... andatory, disallowance as per Rule 8D has be made even in cases where no tax free income has ,ed or where tax free income earned is lesser than the nt computed as per Rule 8D of the Rules. Proposition laid down by various High Courts as mentioned hereinabove is applicable in the present case with full force. In view of this, we direct the Assessing Officer to limit the disallowance made under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 14A of the Income Tax Act, 1961, r.w. Rule 8D(ii). 3. Brief facts of the case are that the assessee company is in the business of cotton and polyester yarn manufacturing. During the year the assessee has earned dividend income of ₹ 19,071/- from the investment in shares and mutual funds. The Assessing Officer made addition of ₹ 20,99,549/- to the income of the assessee u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. We have heard the ld. Representatives of both the parties and perused the material available on record. The matter has been dealt in the assessee s own case for the AY 2009-10 in ITA No. 268/CHD/2015. For the sake of brevity the relevant portion of the order is as under : Delhi High Court in the case of CIT Vs. Holcim India P. Ltd., ITA No.486/299 of 2014, dated 5.9.2014 and that of Gujarat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh Courts as mentioned hereinabove is applicable in the present case with full force. In view of this, we direct the Assessing Officer to limit the disallowance made under section 14A of the Act read with Rule 8D of the Rules to the amount of tax free income earned by the assessee. In view of the above, we direct the Assessing Officer to limit the disallowance to the amount of tax free income e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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