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2015 (3) TMI 651 - HC - Income TaxComputation of disallowance of interest - Tribunal rejected the computation made by the AO as per Rule 8D - Grievance of the revenue is that in terms of decision of Godrej Boyce Mfg. Co. Ltd. (2010 (8) TMI 77 - BOMBAY HIGH COURT) reasonable disallowance of expenditure in relation to exempt income has to be made even in respect of Assessment Year prior to Assessment Year 2008-09 when Rule 8D of the Income Tax Rules, 1962 is applicable - Held that:- So far as the issue of disallowance of reasonable expenditure to earn exempt income is concerned, we find that the impugned order has followed its decision in case of the respondent-assessee for the Assessment Year 2005-06 [2014 (8) TMI 457 - BOMBAY HIGH COURT] where disallowance was limited to 2% of the exempt income and the same was held to be fair and reasonable. The revenue being aggrieved by the order of the Tribunal in case of respondent-assessee for the Assessment Year 2005-06 has preferred an appeal to this Court. However the above appeal of the revenue was dismissed. - Decided against revenue.
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