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2016 (1) TMI 35 - AT - Income TaxDisallowance under section 14A r/w rule 8D - Held that:- As could be seen during the assessment proceedings, the assessee also furnished a working computing the disallowance under section 14A r/w rule 8D, which worked out to ₹ 18,45,336. The Assessing Officer, in fact, has accepted the disallowance under rule 8D computed by the assessee. Therefore, from the aforesaid facts, it is very much clear that the maximum disallowance which could have been made under section 14A r/w rule 8D, was to the tune of ₹ 18,45,336. However, as is apparent on record, the assessee itself has made a suo–motu disallowance of expenditure to the tune of ₹ 2,49,45,390, which is much higher than the disallowance which could have been made by applying the provisions of rule 8D. Therefore, the assessee having already made disallowance under section 14A, for an amount of ₹ 2,49,45,390, any further disallowance over and above the said amount is not only unreasonable but is against equity, fair play and justice. That being the case, we delete the addition of ₹ 18,45,336, made by the Assessing Officer under section 14A r/w rule 8D. - Decided in favour of assessee
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