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2016 (8) TMI 594 - ITAT PUNEDisallowance u/s. 40A(2)(b) of electricity expense - Held that:- In so far as the observations of the authorities below that the electricity bill is in the name of M/s. Kirloskar Oil Engines Ltd. is concerned, we are of the view that the same are unwarranted. Since, the premises from where the assessee is carrying on its activities belong to M/s. Kirloskar Oil Engines Ltd. the electricity connection would obviously be in the name of M/s. Kirloskar Oil Engines Ltd. In view of the entirety of facts we do not find any reason to disallow the electricity expenditure claimed by the assessee Disallowance u/s. 14A - Held that:- The assessee has made investment of ₹ 2,04,527/- in M/s. Kirloskar Oil Engines Ltd. and other group concerns. The assessee has earned dividend of ₹ 3,56,000/-. The contention of the ld. AR of the assessee is that the assessee has not incurred any administrative expenditure on earning tax free income. It is not the case of the Revenue that the assessee has made investment from the interest bearing funds. We are of the considered view that the disallowance of ₹ 3,04,830/- made by the Commissioner of Income Tax (Appeals) is very much on the higher side. To meet the ends of justice disallowance of 5% of the exempt income earned would be fair and justified
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