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2012 (7) TMI 182 - AT - Income TaxDisallowance under section 14A - indirect expense incurred in earning the dividend income claimed exempt u/s 10(34)- CIT(A)restricting the to Rs.1,00,000/- as against the disallowance of Rs.16,90,103 computed by the AO - Held that:- As decided in Maxopp Investment Ltd. vs. C.I.T.[2011 (11) TMI 267 (HC)] as per-rule 8D period whenever issue of section 14A arises before an AO, he has first of all, to ascertain correctness of claim of assessee in respect of expenditure incurred in relation to income which does not form part of total income under Act and if he is satisfied on an objective analysis and for cogent reason that amount of such expenditure as claimed by assessee is not correct, he required to determine amount of such expenditure on basis of a reasonable and acceptable method of apportionment rule 8D, which is prospective in operation and cannot be regarded as being retrospective - the issue is remitted to the file of the Assessing Officer to consider the issue afresh in light of the decision - partly in favour of revenue.
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