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2012 (8) TMI 639 - AT - Income TaxAccrued interest on bad debts written off - Held that:- No dispute that the transactions of debts had actually taken place and interest thereon had been offered to tax over the years and assessed as business income in the hands of the assessee, and as such, write off of such debts after initiation of legal proceedings could not be considered as lacking bona fides - The interest in question relates to the written off debts and when the debts are validly written off, the accrued interest on such debts does not arise - in favour of assessee. Disallowance by invoking sec 14A - exemption claimed on dividend from mutual fund u/s 10(33) - Held that:- For failure to file the details of expenditure incurred by the assessee for earning the said income, AO made disallowance of Rs.6.55 lakhs reveals that it lacks reasoning and the basis for coming to the quantification of disallowance at Rs.6.55 lakhs - as it is not evident as to how this figure of Rs.6.55 lakhs has been arrived at the order of CIT(A) is set aside and restore the matter to the file of AO with a direction to recompute the disallowance warranted in terms of S.14A keeping in mind the provisions of Rule 8D as laid down in GODREJ AND BOYCE MFG. CO. LTD. [2010 (8) TMI 77 - BOMBAY HIGH COURT] - assessee’s appeal is partly allowed for statistical purposes.
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