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2016 (3) TMI 1333 - AT - Income TaxAddition made u/s 14A - assessee has made investment of interest bearing funds in the partnership firm, profit of which was exempt - Held that:- As decided in assessee's own case it has to be necessarily held that once the appellant has earned substantial taxable income from investment in partnership firm and the Exempt Income earned being merely 3% of the substantial taxable income earned by the appellant at ₹ 52.84 lacs, the disallowance has to be made in the ratio of Exempt/Taxable income which comes to 1:30.85 and accordingly, disallowance made under rule 8D has to be proportionately reduced to 1,81,050/-. Therefore, the disallowance made at ₹ 57,52,608/- is hereby directed to be reduced to ₹ 1,81,050/- and appellant shall get consequential relief. We uphold the action of the CIT(A) in restricting the addition to the ratio of exempt income to taxable income. - Decided against revenue Addition of office and general expenses - Held that:- AO has failed to bring out any instances of missing vouchers and the cash payments made by the assessee. The Ld. DR could not bring anything contrary to the finding of the ld. CIT(A). Hence, we uphold the action of the ld. CIT(A) in restricting the addition to ₹ 50,000/-. - Decided against revenue Addition under the head “Repairs and Maintenance" - Held that:- We found that the reason given by the Assessing Officer for this disallowance was the missing vouchers and bills. The AO has not brought out any instances of any missing supporting vouchers. The Ld. DR could bring anything contrary to the finding of the ld. CIT(A). We uphold the action of the ld. CIT(A) in restricting the addition of ₹ 10,000/-.- Decided against revenue
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