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2016 (10) TMI 1253 - AT - Income TaxDisallowance made u/s. 14A r.w.r. 8D - computation of deduction - HELD THAT:- As decided in assessee’s own case [2014 (3) TMI 399 - ITAT MUMBAI] Rule 8D is applicable for the year under consideration therefore, the disallowance of administrative expenses has to be computed as per the formula provided in Rule 8D. The disallowance worked out under Rule 8D cannot exceed the total expenditure claimed by the assessee which can be apportioned to the exempt income. Thus we set aside this issue to the record of AO for the limited purpose of computing the total expenditure incurred by the assessee for the composite/indivisible activities in which taxable and non-taxable income is received and if the disallowance work out under Rule 8D on account of administrative expenses exceeds the total claim of expenditure incurred for the composite activities resulting taxable or non-taxable income then the disallowance should be restricted to the said actual total claim of expenditure. We set aside the order passed by the CIT(A) on this issue and restore the same to the file of the Assessing Officer for considering the issue afresh by duly considering all the types of contentions that may be raised and all the materials that may be produced by the assessee. - Appeal filed by the assessee as allowed for statistical purposes.
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