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2018 (4) TMI 1804 - ITAT CHANDIGARHDisallowance u/s 14A - assessee has earned exempt income u/s 10 from the investment in shares and mutual funds - CIT-A restricted the addition - HELD THAT:- As decided in own case [2015 (11) TMI 1668 - ITAT CHANDIGARH] no agreement with the proposition that the Rule 8D of the Rules being mandatory, disallowance as per Rule 8D has be made even in cases where no tax free income has ,ed or where tax free income earned is lesser than the nt computed as per Rule 8D of the Rules. Proposition laid down by various High Courts as mentioned hereinabove is applicable in the present case with full force. In view of this, we direct the Assessing Officer to limit the disallowance made under section 14A of the Act read with Rule 8D of the Rules to the amount of tax free income earned by the assessee - we direct the Assessing Officer to limit the disallowance to the amount of tax free income earned - Decided against revenue.
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