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2014 (5) TMI 768 - ITAT HYDERABADDisallowance of expenses u/s 14A r.w. Rule 8D of the Act – Held that:- Following assessee’s own case for the previous assessment year, it has been held that, revenue has not brought out any evidence to prove that the assessee has engaged any specialized staff either for making the investments in shares and mutual funds or for looking after such activities of the assessee, or to prove that any expenditure has in fact been specifically incurred for making such investments or for carrying out such activities - no disallowance in terms of S.14A is called for, merely based on the presumption that certain expenditure must have been incurred, by resorting to estimation of such expenditure - For bringing any interest expenditure claimed by the assessee under the ambit of Rule 8D(2)(ii) the AO has to show that the interest is not directly attributable to any particular income or receipt - there was merit in the contention of the assessee that the investments have been made from out of the interest-free funds available with it - no disallowance out of the interest expenditure is called for in terms of S.14A of the Act, by estimating such interest expenditure as attributable to the amounts of investment - there was no merit in the appeal of the department – Decided against Revenue.
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