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2016 (3) TMI 1284 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - Held that:- Disallowance u/s.14A could be made if the assessee claimed some expenditure against the exempt income. The reason behind the section 14A and Rule 8D is to deny double benefit to the assessee i.e. claiming exemption on one hand and claiming expenditure on the other. But it was never intended by the legislature that disallowance should be made in a routine manner without considering the basic fact i.e. amount of expenditure incurred by the assessee. The assessee had advanced certain arguments that are listed at para 4.2 at pg No.3 of the order of the FAA. We find that the FAA has not dealt with the submissions made by the assessee. We are of the opinion that the matter needs further verification and investigation - thus rendering back the issue to the file of AO for fresh adjudication - Decided partly in favour of assessee for statistical purposes.
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