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2019 (1) TMI 1555 - AT - Income TaxDisallowance u/s. 14A of the Act r.w.r. 8D - disallowance cannot exceed the exempt income - HELD THAT:- Hon'ble Delhi High Court in the case of Joint Investments (P) Ltd. v. CIT [2015 (3) TMI 155 - DELHI HIGH COURT] has taken the view that disallowance u/s. 14A cannot exceed the exempt income. Similar view was expressed by the Hon'ble Delhi High Court in the case of CIT v. Holcim India Pvt. Ltd., [2014 (9) TMI 434 - DELHI HIGH COURT] . These decisions were considered by the Mumbai Bench of the Tribunal in the case of Future Corporate Resources Ltd v. ACIT [2017 (9) TMI 805 - ITAT MUMBAI] relating to AY 2011-12 and it was held by the Tribunal Mumbai Bench that disallowance u/s. 14A of the Act cannot exceed the exempt income. Following the aforesaid decisions, we hold that disallowance u/s. 14A in the present case should be restricted to the exempt income earned by the assessee. Charging of Interest u/s 234B, 234C and 234D - HELD THAT:- The charging of interest is consequential and mandatory and the AO has no discretion in the matter. This proposition has been upheld by the Hon’ble Apex Court in the case of Anjum H. Ghaswala [2001 (10) TMI 4 - SUPREME COURT] and I therefore uphold the action of the AO in charging the assessee the said interest. The AO is, however, directed to re-compute the interest chargeable u/s 234B, 234C and 234D of the Act, if any, while giving effect to this order.
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