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2016 (1) TMI 1401 - AT - Income TaxAddition u/s 14A r.w. Rule 8D - Held that:- We have no doubt that the disallowance u/s 14A r.w. Rule8D (2) (iii) were applicable to the assessment year 2009-10 which is before us however we find a merit in the contention of the assessee that the disallowance has to be worked out on the basis of investments which yielded dividend during the year and not by factoring in the total amount of investments. In the case of ACB India Ltd. Vs. Assistant Commissioner of Income-tax [2015 (4) TMI 224 - DELHI HIGH COURT] held that while calculating disallowance u/s 14A r.w. Rule8D (2)(iii) only those investments which yielded dividend should be taken into account and not those investments which did not earn any dividend during the year. Thus set aside the issue to the file of the AO with the direction to work out the disallowance u/s14A r.w. Rule8D(2)(iii) by taking those investments which yielded dividend during the year by giving reasonable and proper opportunity to the assessee. - Decided in favour of assessee for statistical purposes.
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