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2017 (5) TMI 1482 - AT - Income TaxDisallowance under section 14A - Held that:- We direct Ld. AO to recompute disallowance under section 14A restricting to exempt income only as per ratio laid down by Hon’ble Delhi High Court, in the case of Cheminvest Ltd versus CIT [2015 (9) TMI 238 - DELHI HIGH COURT] and Maxop Investment Ltd.Vs. CIT(A) [2011 (11) TMI 267 - Delhi High Court] Consultancy expenses allowance - Held that:- Assessee has incurred similar expenses in the preceding assessment years, which has not been disputed by Ld. AO. In fact for A. Y. 2006-07, which has been argued before us, no such disallowances have been observed to have been made by Ld. AO. Ld. AO has also not disputed the consistent method of allocation of consultancy in the preceeding assessment years. When there is no change in the business of assessee consultancy expenses incurred towards consultancy charges to an extent of 25% cannot be disallowed. Accordingly, this ground raised by assessee is partly allowed for statistical purposes.
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