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2015 (7) TMI 1364 - AT - Income TaxDisallowance u/s 14A - HELD THAT:- Assessee has made fresh investments in 9 schemes of mutual funds during the year under consideration and it has closed investments made in six schemes, which were standing at the beginning of the year. The assessee has also received dividend income to the tune of ₹ 15.29 lakhs. Assessee has indulged in quite number of transactions during the year and hence, we see no merit in the contentions of the assessee that it did not incur any expenses for earning the dividend income. Considering the number of transactions, quantum of aggregate expenditure as well as fact that the assessee has received dividend income we are of the view that a reasonable disallowance should be made as required under the provisions of section 14A - we are of the view that the disallowance of ₹ 50,000/- made by the AO is on the higher side. We hold that a disallowance would be reasonable in the facts and circumstance of the case. Accordingly, we set aside the order of the ld. CIT(A) on this issue and direct the AO to restrict the disallowance to ₹ 25000/-, as referred above.
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