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2015 (1) TMI 1298 - AT - Income TaxDisallowance of interest u/s.14A - Held that:- We have considered rival contentions and found that the AO accepted the contention of the appellant partially that the borrowed funds were utilized for the business purpose and accordingly did not make any disallowance of interest u/s.14A. The AO has invoked the provisions of section 14A and applied the formula as prescribed under Rule 8D of the Income Tax Rules following the decision in the case of Godrej & Boyce [2010 (8) TMI 77 - BOMBAY HIGH COURT] and made the disallowance of ₹ 94,09,045/- u/s.14A by calculating 0.5% of the average investments, from which income earned is exempt.
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