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2016 (9) TMI 150 - AT - Income TaxDisallowance of interest expenditure under section 14 A read with Rule 8D - Held that:- AO has disallowed ₹ 9,31,500/-working out @ 1.5% of the interest bearing funds relatable to investment in shares which is 17.68%. The assessee has contended that it had not incurred any expenditure directly or indirectly, on earning dividend income since, the investments therein were made from its own funds in the early years. This contention of the assessee, it appears, has not been controverted by the authorities below. However, even then it cannot be said that no expenses at all were incurred for earning exempt income. In this view of the matter, and going by the decisions of the coordinate Bench, we direct the AO to restrict the disallowance u/s 14A of the Act to 10% of the dividend income. Disallowance of bad debts - Held that:- The debt in question has been written off as irrecoverable in the accounts of the assessee. Hence, in our considered view, this issue is covered by the ratio laid down by the Hon’ble Supreme Court in TRF vs. CIT (2010 (2) TMI 211 - SUPREME COURT ). We, therefore, set aside the findings of the Ld. CIT(A) and allow the claim of bad debts Eligibility for the claim of depreciation in case of assets put on lease allowed Bogus long term capital loss - Held that:- Since the assessee is unable to establish its claim and has failed to control the findings of the authorities below that the long term capital loss is bogus in view of the brokers note produced not being genuine, we uphold the findings of the learned CIT (A) and consequently dismissed these grounds raised by the assessee.
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