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2014 (8) TMI 722 - AT - Income TaxDisallowance u/s 14A r.w. Rule 8D – Held that:- In the case of GODREJ AND BOYCE MFG. CO. LTD. Versus DEPUTY COMMISSIONER OF INCOME-TAX AND ANOTHER [2010 (8) TMI 77 - BOMBAY HIGH COURT] it has been held that Rule 8D r.w.s. 14A(2) is not arbitrary or unreasonable and also not retrospective and applies from A.Y. 2008-09 – u/s 14A of the Income Tax Act, resort can be made to Rule 8D of the Income Tax Rules for determining the amount of expenditure in relation to exempt income, if, the AO is not satisfied with the correctness of the claim made by the assessee in respect of such expenditure – CIT(A) without recording any reasoning for his dissatisfaction with regard to the working/claim of the assessee, straightway applied Rule 8D against the mandate of the provisions of section 14A of the Income Tax Act - CIT(A) also ignored the mandate of the provisions of section 14 A, while confirming the disallowance – thus, the matter is remitted back to the AO for fresh adjudication – Decided in favour of Assessee.
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