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2019 (7) TMI 1859 - AT - Income TaxDisallowance u/s 14A read with Rule 8D - assessee has debited interest expenses in the Profit & Loss Account and also made large investment on which he earned tax free income which is not forming a part of the total income - HELD THAT:- Since interest receipts are excess than the expenditure on interest there should not be any disallowance in Rule 14A of the Act in view of several judicial pronouncements including Safal Realty Pvt. Ltd.[2013 (11) TMI 1588 - ITAT AHMEDABAD] - It is also settled principal that disallowance cannot exceed the total expenditure claimed by the assessee. The appellant had incurred and claimed total expenditure of ₹ 32,235/- (₹ 2235 + 30,000). In that view of the ratio laid down by the judicial pronouncements as discussed above, the CIT(A) correctly restricted disallowance of ₹ 32,235/- being the total expenditure claimed by the assessee deleting the remaining addition of ₹ 8,60,278/-. - Decided against revenue.
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