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2014 (1) TMI 228 - AT - Income TaxDisallowance of administrative and general expenses Earning of exempt dividend income u/s 14A Application of Formula provided under Rule 8D of IT rules Held that:- The assessee has incurred a total expenses of Rs.49,85,000/- towards staff cost, operating and administrative expense; establishment/general expenses of MIS department which is handling the investment apart from the activity of accounts and banking operations Thus, a reasonable estimate and allocation of expenses for the purposes of investment activity would be the 1/3 of the total expenses incurred on MIS department - the investment activity also includes investment in the foreign companies and the dividend of which is taxable as well as the investment which are not yielding dividend income - but some fixed maturity plans of mutual funds, then the same would be excluded while considering apportionment of the expenses incurred for earning the dividend income Decided partly in favour of Assessee.
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