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2019 (6) TMI 1573 - AT - Income TaxDisallowance u/s 40(a)(ia) - non-deduction of TDS on payment made to the Markeing Agencies towards sales promotion expenses, payment made to Krishna Clearing Agencies and Maheshwari Enterprise respectively towards Transportation charges and payment made towards consultancy charges - HELD THAT:- As decided in SMT. KANTA YADAV [2017 (5) TMI 1565 - ITAT NEW DELHI] disallowance u/s 40(a)(ia) to be restricted to 30% of the addition as considered the amended provisions of section 40(a)(ia) of I.T. Act - thus we set aside and modify the orders of the authorities below and direct the Assessing Officer to restrict the addition to 30% of the total addition made on account of deduction of TDS u/s 40(a)(ia) of the Act. - Decided against revenue. Disallowance u/s 14A r.w.r. 8D - HELD THAT:- As appellant has submitted that it had earned exempt income in the form of dividend and had suomoto made a disallowance which in any case exceeded the exempt income. Hence, no further disallowance was justified. It is seen in the case of Chudgar Ranchhodlal Jethalal [2015 (4) TMI 437 - ITAT AHMEDABAD] has held that the disallowance cannot exceed exempt income. In the facts of the case and judicial decisions in this regard, the addition made by the Assessing Officer is deleted and the disallowance is restricted to the amount of exempt income. - Decided against revenue.
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