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2016 (5) TMI 462 - AT - Income TaxDisallowance under section 14A - AO has computed the disallowance under section ½% on the average investment as on the opening balance and closing balance of investments of the relevant period - Held that:- As observed by the learned CIT(A), while interest expenditure has been incurred on funds invested in the capital of firms from where the assessee has received both taxable income in the form of interest income and remuneration, the assessee would have also incurred certain other expenses like brokerage, bank charges, vehicle expenses, depreciation thereon, etc. for earning such exempt income and therefore some disallowance would be called for under section 14A of the Act, though not as exactly laid out by the AO. In the factual matrix of the matter, as discussed above, we deem it reasonable to restrict the disallowance under Rule 8D(2)(iii) on an adhoc basis - Decided partly in favour of assessee
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