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2019 (2) TMI 1956 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - amount of suo moto computed by the assessee in the return income - non recording of satisfaction by AO - HELD THAT:- There is no satisfaction recorded by the AO while computing the disallowance that how the suo moto disallowance made by the assessee is wrong. Secondly also agree with the argument of the learned Counsel that the disallowance under section 14A of the Act can be reduced below the amount suo moto computed by the assessee in the return of income as it has not to be charged to tax in any case. This view has already been taken by this Tribunal in the case of Sajjan India Ltd. [2017 (12) TMI 47 - ITAT MUMBAI], hence,we direct the AO to restrict the addition to the extent of revised computation of suo moto disallowance by the assessee i.e. only ₹ 20,18,394/- in respect to shares which has yielded dividend income. MAT computation u/s 115JB - As regards to the computation of book profit under section 115JB of the Act no disallowance can be made in relation to exempt income by invoking the provisions of section 14A of the Act read with Rule 8D of the Rules. Hence,also direct the AO to delete the addition while computing book profit. Accordingly, the appeal of the assessee is decided and partly allowed.
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