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2014 (1) TMI 899 - AT - Income TaxDisallowance u/s 14A of the Act – Assessee being individual must be considered accordingly – Application of Rule 8D – Held that:- The provisions of section 14A r w Rule 8D has application to the AY 2008-09 - the assessee made investment in shares and earned exempt income out of it - the assessee has not maintained separate accounts for his investment activities - The expenditure accounts are commonly maintained - The inclusion of disallowable expenditure u/s 14A of the Act in such common accounts is certainly a possibility – Thus, there is great amount of possibility that some of the expenditure incurred and debited to P & L account of Pundole Exports must relate to the exempt income of the assessee - the disallowance made by the AO is reasonable and in accordance with the provisions of section 14A of the Act read with Rule-8D of the Act – the claim of the assessee ie no expenditure is incurred and assessee, has not been demonstrated conclusively and logically - the onus is on the assessee to demonstrate when a claim of exemption and deduction of income or expenditure is made - Thus, the assessee has not discharged his onus satisfactorily - the order of the CIT(A) upheld – Decided against Assessee.
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