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2014 (11) TMI 759 - AT - Income TaxConfirmation of disallowance u/s 14A – Decision relied overruled by subsequent decision - Held that:- The AO observed that the assessee has earned dividend income - The assessee has made investment of ₹ 200 lakhs on 31.03.2007 - The assessee is engaged in trading of shares & securities and shares & securities of ₹ 17,79,181/- were held by the assessee as inventory on 31.03.2007 - The assessee has taken loan of ₹ 2,92,25,326/- on which interest of ₹ 12,20,327/- was paid - the assessee must have incurred some administrative expenses to earn tax free dividend income - some disallowance u/s. 14A of the Income Tax Act is warranted - the assessee rightly argued that the decision in Income-tax Officer, Ward 6(2) (2), Mumbai Versus Daga Capital Management (P.) Ltd. [2008 (10) TMI 383 - ITAT MUMBAI] has been overruled in Godrej & Boyce Mfg. Co. Ltd. vs. DCIT [2010 (8) TMI 77 - BOMBAY HIGH COURT] - Since the decision was not available before the AO, therefore the issue should be restored back to the file of the AO for adjudication of the issue afresh in the light of the decision of the Hon’ble Bombay High Court – thus, the order of the CIT(A) is remitted back to the AO for fresh adjudication for adjudicating the issue of disallowance of expenditure u/s. 14A – Decided in favour of assessee.
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