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2014 (11) TMI 1149 - AT - Income TaxDisallowance of interest and other administrative expenditure u/s. 14A - Held that:- There is no denial that assessee’s own funds are much more than the investment made by the assessee. Drawing support from the decision of the Hon’ble Bombay High Court in the case of CIT Vs Reliance Utilities & Power ltd.[2009 (1) TMI 4 - BOMBAY HIGH COURT] in our considered opinion, this is not a fit case for considering interest expenses for the purpose of disallowance u/s. 14A r.w. Rule 8D of the Act. In so far as other expenses are concerned, we find force in the contention of the Ld. Counsel. In the computation of income, the assessee has suo moto disallowed stamp duty and registration charges of ₹ 2,25,000/- and loss on sale of investment at ₹ 3,23,44,976/- in addition to the disallowance out of interest at ₹ 27 lakhs. Considering all these facts in totality, we direct the AO to recompute the disallowance after taking into consideration the auditors remuneration at ₹ 1,70,760/-, legal and professional charges at ₹ 49,000/- and miscellaneous expenses & professional tax at ₹ 4,760/-. We further direct the AO to restrict the disallowance to the total actual expenditure incurred and claimed by the assessee. Appeal filed by the assessee is partly allowed.
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