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2015 (1) TMI 777 - AT - Income TaxDis allowance u/s. 14A, Rule 8D(2)(ii) in respect of speculation business - interest costs for earning dividends - Held that:- If the conclusion arrived at by the Tribunal in the case of the assessee itself for Assessment Year 2009-10 is analyzed with the facts of the present Assessment Year, uncotrovertedly the disallowance computed under Rule 8D of the Income Tax Rules cannot be more than the actual expenditure incurred by the assessee for the dividend income excluding the activity of share trading which is the business activity of the assessee. The computation of disallowance arrived at as per Rule 8D of the Rules should be restricted only to the extent of actual expenditure or to the extent of the expenditure which can be attributable to the activity of the dividend income excluding the business activity of share trading. Thus, we direct the Assessing Officer to re-compute the disallowance u/s 14A with the rider to the actual expenditure which can be attributable to the receipt or earning of dividend income excluding the expenditure related to business activity of share trading. - Decided in favour of assessee for statistical purposes.
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