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2014 (11) TMI 999 - ITAT MUMBAIDisallowance made u/s 14A - Held that:- The tax authorities were not justified in applying Rule 8D(2)(iii) by disregarding the accounts and claims of the assessee. According to the assessee, he had made the investments in the earlier years and major portion of exempt income was from Government securities. However, the Ld A.R could not conclusively clarify that the different concerns are not operating from different addresses. Accordingly, on a conspectus of the matter, we are of the view the disallowance u/s 14A may be restricted to ₹ 10,000/- and the same, in our view, would meet the ends of justice. Accordingly we modify the order of the Ld CIT(A) on this issue and direct the AO to restrict the disallowance u/s 14A of the Act to ₹ 10,000/-. - Decided partly in favour of assessee Disallowance made out of motor car expenses, travelling & conveyance expenses and telephone expenses - Held that:- With regard to the disallowance made out of Motor Car expenses and Traveling & conveyance expenses, the assessee did not find material to contradict the findings given by the tax authorities. Accordingly, we confirm the order of Ld CIT(A) on these two additions. With regard to the telephone expenses, the disallowance suggested by the Ld CIT(A) appears to be on higher side. Accordingly, we direct the AO to restrict the disallowance to 50% of residential telephone expenses and 5% of the office telephone expenses. In our view, the same would meet the ends of justice. - Decided partly in favour of assessee
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