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2017 (2) TMI 1254 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - Held that:- In the present case the assessee has earned exempt dividend income of ₹ 11058833/- and assessee on its own has disallowed a sum of ₹ 21952010/- in the form of ₹ 678146/- out of interest and ₹ 21273864/- in accordance with the clause (iii) of sub rule 2 of rule 8 D under section 14 A of the income tax act. Recently, the Delhi High Court in the case of Joint Investments vs ACIT [2015 (3) TMI 155 - DELHI HIGH COURT ] held that disallowance under section 14A of the Act must not be made to the extent that it is almost equal to or more than the actual dividend income received by the assessee. As in the present case disallowance under section 14 A read with rule 8D has already exceeded by the suo Moto disallowance made of the assessee amounting to ₹ 21952010/- against the exempt income of ₹ 11058833/- therefore no further disallowance can be imputed. - Decided in favour of assessee.
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