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2014 (3) TMI 426 - AT - Income TaxDisallowance of interest u/s 14A of the Act – Held that:-Disallowance under section 14A read with rule 8D can only be invoked when the assessee has incurred some expenditure on earning of tax exempt income – Relying upon Goetze (India) Ltd. –vs- CIT [2009 (5) TMI 615 - ITAT DELHI] and COMMISSIONER OF INCOME TAX Versus WIMCO SEEDLINGS LTD. [2011 (12) TMI 16 - DELHI HIGH COURT]- the burden is on the AO to establish the nexus of expenses having incurred for earning of exempted income before making disallowance under section 14A - unless it is demonstrated that some expenses have been incurred in earning the tax exempt income, the provision of rule 8D cannot be invoked at all – matter remitted back to the AO for de novo adjudication - Decided in favour of assesse.
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