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2014 (8) TMI 160 - AT - Income TaxDisallowance u/s 14A r.w. Rule 8D - Income from business of share trading as well as dividend income – Held that:- Following the decision in SESA GOA LTD Versus JCIT RANGE - 1, PANAJI [2013 (9) TMI 233 - ITAT PANAJI] - before making any disallowance u/s 14A, the AO is required to record a satisfaction, having regard to the accounts of the assessee, that claim of assessee that expenditure incurred is not related to the income forming part of the total income is incorrect - Such satisfaction must be arrived at on the objective basis - the AO before rejecting the disallowance computed by the assessee must give a clear cut finding having regard to the accounts of the assessee how the other expenditure claimed by the assessee out of non-exempt income is related with the exempt income - the onus to prove in this regard lies on the AO - until and unless this is proved or established by the revenue, the AO does not have any power to reject the accounts of the assessee and take the shelter of Rule 8D for computing the disallowance out of the exempt income - whether to invest or not to invest is a very strategic decision and top management involve in taking the decisions – Relying upon Godrej & Boyce Mfg. co. Ltd. Vs. DCIT & another [2010 (8) TMI 77 - BOMBAY HIGH COURT] - the disallowance made u/s 14A r.w. Rule 8D is set aside – Decided in favour of Assessee.
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