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2017 (4) TMI 1459 - AT - Income TaxAddition u/s 14A r.w.r. 8D - HELD THAT:- As decided in own case [2017 (2) TMI 1428 - ITAT MUMBAI] as contended by the assessee, it is settled position of law that the provisions of Rule 8D of the I.T. Rules, 1962 are applicable prospectively for and from A.Y. 2008- 09 and would not operate for the assessment years prior thereto. In this view of the matter, CIT(A)'s directions to the AO to work out/compute the disallowance under section 14A of the Act by applying Rule 8D of the Rules is erroneous and we therefore delete the same and in the fitness of things, we direct the AO to re-compute the disallowance under section 14A of the Act afresh, in accordance with the law prevalent for the year under consideration, after affording the assessee adequate opportunity of being heard and to file details/submissions required in this regard. Assessee's appeal are treated as allowed for statistical purposes. Disallowance of interest on loans to subsidiaries - HELD THAT:- Assessee stated that loans and advances which are under consideration have already been considered by the Tribunal in earlier years and decided the issue in favour of assessee allowing the claim of the assessee. The assessee stated that the issue now stands covered in favour of assessee. On the other hand, the learned Sr. DR fairly conceded that there is reduction in loans and advances what was in earlier years. We find that this issue is squarely covered in favour of assessee and against Revenue by the decision of the Tribunal in assessee’s own case. Hence, respectfully following the same we allow the claim of the assessee. The orders of the lower authorities are set aside and this issue of assessee’s appeal is allowed.
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