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2016 (8) TMI 1415 - AT - Income TaxDisallowance u/s 14A - Held that:- Tribunal directed the AO to restrict the disallowance u/s. 14A of the Act, to the exempt income earned by the assessee. In the process, the ITAT has considered all the relevant case law - National Thermal Power Co. Ltd. V. CIT [1996 (12) TMI 7 - SUPREME COURT], CIT v. Pruthvi Brokers and Shareholders Pvt. Ltd. [2012 (7) TMI 158 - BOMBAY HIGH COURT], Gujarat Gas Ltd. V. JCIT [2000 (4) TMI 19 - GUJARAT HIGH COURT] and Goetze (India) Ltd. V. CIT [2006 (3) TMI 75 - SUPREME COURT] In view of the above, we direct the AO not to make any disallowance of interest u/s.14A read with rule 8D. Facts and circumstances during the assessment year 2007-08 are pari material, therefore, following the above reasoning, we direct the AO to delete the disallowance of interest while computing disallowance u/s.14A r.w.rule 8D.- Decided in favour of assessee.
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