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2015 (10) TMI 2787 - AT - Income TaxDisallowance u/s 14A - Assessee submitted disallowance cannot exceed the amount of dividend income - HELD THAT:- As relying on JOINT INVESTMENTS PVT LTD VERSUS COMMISSIONER OF INCOME TAX [2015 (3) TMI 155 - DELHI HIGH COURT] by no stretch of imagination can Section 14A or Rule 8D be interpreted so as to mean that the entire tax-exempt income is to be disallowed. The window for disallowance is indicated in Section 14A, and is only to the extent of disallowing expenditure “incurred by the assessee in relation to the tax-exempt income”. This proportion or portion of the tax-exempt income surely cannot swallow the entire amount as has happened in this case.” Respectfully following the decision of Hon’ble High Court, direct for restricting the disallowance u/s 14A to ₹ 28,55,485/-. - Decided partly in favour of assessee.
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