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2017 (4) TMI 1407 - AT - Income TaxDisallowance u/s 14A r/w rule 8D - expenditure incurred for the purpose of earning exempt income - Held that:- Tribunal while deciding identical nature of dispute in assessee’s own case for assessment year 2009–10, has held that certain expenditure like godown rent, warehousing charges, insurance, foreign travel, trading expenses, business promotion expenses, etc., cannot be considered as expenditure incurred for the purpose of earning exempt income. Under identical facts and circumstances, the Tribunal has found that disallowance of expenditure attributable to earning of exempt income made voluntarily by the assessee under section 14A is reasonable. We have further noted that in the impugned assessment year, the disallowance of expenditure made by the assessee voluntarily under section 14A works out to almost 44% of the total expenditure as compared to 35.10% in assessment year 2009–10. Moreover, the Assessing Officer has not recorded any satisfaction that the disallowance made by the assessee with reference to its books of account is incorrect or unreasonable. Moreover, no distinguishing fact has been brought to our notice by the learned Departmental Representative to deviate from the earlier order. Disallowance under section 14A by the assessee in the computation of income being reasonable should be accepted. Accordingly, the addition is hereby deleted. - Decided in favour of assessee.
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