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2014 (3) TMI 963 - AT - Income TaxDisallowance u/s 14A - CIT(A) restricted part disallowance - Held that:- CIT(A) examined the facts of the case in the light of section 14A of I.T. Act read with Rule 8D and decisions of Godrej & Boyce Mfg. Co. Ltd. vs. DCIT [2010 (8) TMI 77 - BOMBAY HIGH COURT] and Max Opp. Investment Ltd. vs. CIT [2011 (11) TMI 267 - Delhi High Court]. CIT(A) accepted the contention of the assessee that term loan on which interest was paid, was taken after F.Y. 31/03/1999. The shares were acquired in F.Y. 1998- 99, thus, the term loan was nil as on 31/03/1999. It was, therefore, found that the interest paid on the term loan is clearly not related to the exempt income. Therefore, the amount as per Rule 8D(2) would be nil. These findings of fact recorded by ld. CIT(A) have not been challenged and rebutted through any material on record. Therefore, ld. CIT(A) was justified in deleting the addition of ₹ 12,77,835/-. The decisions cited by ld. DR thus, would not support the case of the Revenue in any manner. The Departmental appeal thus, has no merit and is, accordingly, dismissed. Similarly, assessee has not been able to demonstrate before us as to how the disallowance confirmed by ld. CIT(A) in a sum of ₹ 1,43,479/- was not sustainable. - Decided against asssessee and revenue in part.
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