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2015 (1) TMI 1436 - AT - Income TaxDisallowance u/s. 14A r.w. Rule 8D - HELD THAT:- The Hon’ble Bombay High Court in the case of Godrej & Boyce Mfg. Co. Ltd. Vs DCIT& Another [2010 (8) TMI 77 - BOMBAY HIGH COURT] has held that sub-section (2) of Sec. 14A does not enable the AO to apply the method prescribed by Rule 8D without determining in the first instance the correctness of the claim of the assessee in respect of expenditure incurred in relation to income which does not form part of the total income under the Act, that he can proceed to make a determination under the Rules. Taking a leaf out of these observations of the Hon’ble Jurisdictional High Court, we restore the issue to the file of the AO. The AO is directed to verify the correctness of the claim of the assessee and decide the issue afresh as per provisions of the law. Ground No. 1 is allowed for statistical purpose. Denial of the deduction of suo-motu disallowance made by the assessee out of the total disallowance computed by the AO - HELD THAT:- As we restored the issue of computing the disallowance to the file of the AO, the AO is directed to decide this issue also afresh after computing the disallowance u/s. 14A r.w. Rule 8D. This ground is allowed for statistical purpose.
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