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2013 (6) TMI 755 - AT - Income TaxDisallowance u/s 14A u/r 8D - Held that:- It is pertinent to note that when the Assessing Officer had not made any disallowance u/s 14A on account of interest expenditure in the earlier year; therefore, in the absence of fresh investment during the year, no disallowance can be made on account of interest by applying the provisions of sec. 14A. Further, the assessee earned the interest income of ₹ 42,17,981/- against the interest & brokerage expenditure of`. 30,79,450/- . This net interest expenditure offered to tax by the assessee is ₹ 11,38,531/- which show that interest income is more than the interest expenditure and therefore, it cannot be presumed that borrowed fund was utilised for the purpose of making the investments in the shares. - Decided in favour of assessee Disallowance on account of administrative expenditure - Held that:- We do not find any error or illegality in the impugned orders of the authorities below to the extent of disallowance on account of administrative expenditure. Accordingly, the disallowance ofRs.2,2,24,238/- made u/s 14A on account of administrative expenditure is upheld.
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