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2014 (2) TMI 1166 - AT - Income TaxValidity of reopening of assessment - Disallowance u/s 14A - Held that:- Assessing officer reopened the assessment in the name of verifying the house property payment/ receipts. Payment of house property tax are otherwise allowable as statutory deduction, more so when the income qua the same property is taxed. In these circumstances the reasons meant for further verification and for roving inquiries are not sustainable in law - no infirmity in the order of CIT(A), which is upheld as in both the years the issue is almost identical. Section 14A read with rule 8D has been held to be applicable only prospectively from A.Y. 2008-09. No nexus has been found between interest bearing borrowings and exempt income. Besides, the loans in question which were earlier raised have been only repaid in this year. In view of these facts and circumstances we uphold the order of CIT(A). - Decided against Revenue.
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