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2016 (3) TMI 211 - AT - Income TaxAddition u/s 14A - MAT computation - Held that:- In the present case, the finally assessed income of the assessee has been computed in terms of section 115JB of the Act. The disallowance under section 14A of the Act under the normal provisions of the Act was determined at ₹ 65,76,251/-, wherein income by way of long term and short term capital gains and dividend was exempt. On the contrary, in the context of computing income under section 115JB of the Act, the income on account of long term and short term capital gain was includable and only dividend income was excludable or exempt. In such a situation, proportion of the amount disallowable under section 14A of the Act vis-à-vis the income treated as exempt under the MAT provisions (i.e. 115JB of the Act) would vary. As per the calculation furnished by the assessee at the time of hearing, such disallowance works out to ₹ 7,58,633/- as against suo-moto disallowance of ₹ 6,07,845/- made by the assessee in the return of income. Therefore, in our view though the action of the CIT(A) is accepted in principle, the entire amount disallowed by the Assessing Officer could not have been deleted. As a consequence, it is directed that the total disallowance be fixed at ₹ 7,58,633/- (inclusive of suomoto disallowance of ₹ 6,07,845/- made by the assessee). - Decided partly in favour of revenue
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