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2017 (6) TMI 1371 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - additional disallowance u/s. 14A qua investment where the amount is still lying in share application money pending allotment of shares - HELD THAT:- DR has not been able to show any material difference in the facts and circumstances in the assessment year under appeal vis-à-vis assessment year 2009-10, wherein these issues have been considered and adjudicated by the Co-ordinate Bench of the Tribunal in favour of the assessee. Following the decision of Co-ordinate Bench of the Tribunal, we allow ground No. 1 of the main grounds of appeal and the additional ground Nos. 1 to 3 raised by the assessee. We have also considered the judgment in the case of Pradeep Kar Vs. Assistant Commissioner of Income Tax [2009 (6) TMI 331 - KARNATAKA HIGH COURT] We find that the facts in the said case are entirely different. The issue before the Hon’ble High Court in said case was with respect to disallowance u/s. 14A on investment made in shares by using borrowed funds. In the backdrop of above facts the Hon’ble Court held; u/s. 14A, expenditure relating to exempt income is not allowable. In our considered view, the above judgment does not support the case of Department.
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