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2012 (11) TMI 218 - AT - Income TaxDisallowance u/s 14A - held that:- Disallowance u/s 14A is contemplated in respect of exempt income and not which is eligible for deduction under any relevant provision. It is impermissible to mix both the deduction and exemption provisions and then take them in one stride for computing disallowance u/s 14A. Therefore, the authorities below were not justified in placing the exemption provision and deduction provision on one platform for the purpose of making disallowance under this section. Since sections 10AA and 80IAB are 'deduction provisions' and not 'exemption provisions', the investment or expenses incurred to earn income from SEZ do not merit reckoning in computing disallowance u/s 14A - Impugned order on this count is set aside and remit the matter to the file of A.O. for making disallowance u/s 14A on some reasonable basis - In the result, the appeal is partly allowed for statistical purposes.
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