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2012 (4) TMI 602 - AT - Income TaxForeign exchange fluctuation - Held that:- Loss suffered by an assessee on account of fluctuation in the rate of foreign exchange as on the date of balance sheet is an item of expenditure under section 37(1) of the Income Tax Act, 1961 Disallowance under section 40(a)(ia) - Held that:- It is not in dispute that tax has been deducted at the applicable rates and the same has been remitted before due date of filing of the return. Sufficient compliance has been made after tax is remitted before the due date of filing of return. Disallowance made under section 14A read with Rule 8D to 5% of dividend income earned - Held that:- CIT(A) after examining the facts of the case and submissions of the parties has rightly held that 5% of the dividend income would be reasonable expenditure to earn the dividend income of ` 2,13,19,656/- thereby restricting disallowance to ₹ 10,65,980/-. In view of our above findings, we uphold the order of the CIT(A) and dismiss this ground of appeal as well.
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