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2016 (2) TMI 155 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - Reduction of disallowance u/s 14A suo-moto in revised return - whether CIT(A) has erred in confirming the disallowance made by the AO under section 14A r.w. Rule 8D? - Held that:- AO has not made addition with the help of Rule 8D. The AO has observed that keeping in view the quantum of investment i.e. ₹ 8.9 crores expenses added by the assessee itself at ₹ 21,74,52/- is reasonable expenses, hence, he is satisfied with the accounts of the assessee and does not want to make further enhancement. Now, the assessee wants to go back with the declaration made by it. It is true that Income Tax officer is supposed to determine true taxable income of the assessee as observed by the Hon'ble Gujarat High Court in the case of Milton Laminates (supra), but the fact is where is the lapse ? how one can plead that the AO has failed to carry out his exercise ? According to the assessee, the disallowance under section 14A ought to be ₹ 6,93,201/- which it has worked out in the alleged revised return. But, what is basis to work out this disallowance? The assessee could not demonstrate before the AO as to how the expenditure it has added back relating to earning of exempt income were inflated or added back under mistaken fact. Here it is not the case that some statutory benefit was available to the assessee, which by mistake it refrain to claim such benefit. In the present case, the assessee has to work out the expenditure relatable to earning of exempt income, which it has worked out itself. Unless it is pointed out that such working was based on misconception of fact or misconstruction of law, it cannot be allowed to take somersault from the declaration made by it in the return of income. Therefore, the assessee cannot draw any benefit from the judgment cited before us. We do not find any error in the order of the ld. CIT(A), which is upheld. - Decided against assessee
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