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2013 (10) TMI 922 - AT - Income TaxDisallowance u/s 14A – Held that:- Relying upon Godrej & Boyce Ltd. Mfg. Co. VS. DCIT [2010 (8) TMI 77 - BOMBAY HIGH COURT ] Rule 8 D of the Income Tax Rules for calculating disallowance under section 14A of the I.T. Act is applicable from A.Y.2008-09 onwards - The present case is relating to the A.Y. 2007-08. In such year, obviously Rule 8D could not have been applied, but the disallowance was required to be worked out on some reasonable basis - The ld. CIT(A) did not consider the computation made by the assessee while adopting his formula to calculate the disallowance - He also did not consider the contention of the assesse that the entire shares were taken as stock in trade and the dividend income was just incidental to it. The order set aside and the matter restored to the file of the AO for deciding the quantum of disallowance afresh, in accordance with law - The assessee will be at liberty to raise its contentions in this respect - The A.O. will give proper opportunity to the assessee to present its case and produce documents, if any - The AO will be at liberty to call for any record/evidences or statement etc. from the assessee as may be required by him for deciding the issue under consideration – Decided in favour of Assessee.
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