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2015 (10) TMI 1703 - AT - Income TaxDisallowance u/s 14A read with Rule 8D - whether no expenditure was incurred in earning of exempt income? - Held that:- On the facts and circumstances of the present case, the Ld. CIT(A) held that investment would have been made out of common/mixed funds, and therefore the ld. AO has worked out the disallowance at ₹ 26,40,830/- on a proportionate basis with reference to investment of ₹ 166.50lacz out of total interest of ₹ 576.40 lacs paid on account of cash credits. The ld. CIT(A) should have passed a speaking order dealing with contentions of parties in specific terms with facts and figure. The decision of Hon’’ble Delhi High Court in the case of Maxopp Investments, reported [2011 (11) TMI 267 - Delhi High Court ], are very much relevant on the issue of working of disallowance u/s.14A r.w.Rule 8 D by the ld. A.O. We thus following the decision of the coordinate bench in assessee’s own case for assessment year 2009-10, set aside the issue back to the file of A.O to decide the disallowance of expenses u/s.14A r.w. Rule 8 D on the investments of shares in question as per the law, keeping in view the guidelines provided for the same in the case of Maxopp (supra), after affording opportunity of being herd to the assessee. - Decided in favour of assessee for statistical purposes
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