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2016 (1) TMI 636 - AT - Income TaxDisallowance made under section 14A read with Rule 8D - Held that:- In the case of the assessee, the Assessing Officer disallowed under section 14A read with Rule 8D, whereas the actual dividend income received by the assessee and claimed as exempt income under section 10(34). Following the decision of in the case of M/s. Daga Global Chemicals Pvt.Ltd. [2015 (1) TMI 1204 - ITAT MUMBAI ] we are of the view that disallowance under section 14A read with Rule 8D should not exceed the exempt income claimed by the assessee. The Mumbai Bench in its order sustained the disallowance on applicability of provisions of section 14A read with Rule 8D. However, the alternative claim of the assessee was that disallowance it at all should be made, it should be restricted to exempt income earned and not beyond that. Thus, we direct the Assessing Officer to restrict the disallowance to the exempt income. The alternative ground of appeal of the assessee is allowed. - Decided partly in favour of assessee in part.
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