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2017 (5) TMI 1504 - HC - Income TaxExemption of income u/s 14A - Disallowance of claim of deduction for advances made by rural branches u/s 36(1) (viia) - Held that:- In view of the decision of the Supreme Court in Godrej & Boyce Manufacturing Company Ltd.(2017 (5) TMI 403 - SUPREME COURT OF INDIA it is true that disallowance which are made by the department is required to be rejected and the asseseee will be entitled for the benefits conferred u/s 14A. Thus, the order of the disallowance is reversed and claim which has been made 14A is required to be upheld, therefore, issue is required to be decided in favour of the assessee. However, operative question regarding disallowing the claim of deduction for advances made by Rural Branches U/s 36(1) (viia)/B such order is concerned, in view of the decision in The Commissioner of Income Tax vs. The Catholic Syrian Bank Ltd [2010 (10) TMI 1068 - KERALA HIGH COURT ]the issue is answered in favour of the assessee to the extent that in view of the observations made by the Supreme Court, no disallowance will be made u/s 14A.
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