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2016 (9) TMI 1201 - AT - Income TaxDisallowance of Exemption under section 54F - Held that:- Since the assessee in the case on hand has utilized the amount of capital gains in investing in the purchase of a residential property (flat) within the extended period as stipulated under section 139(4) of the Act for A.Y. 2008-09, the assessee is entitled for exemption under section 54F of the Act. Disallowance under section 14A - Held that:- We have heard the rival contentions of both the parties and perused and carefully considered the material on record. From the working of the disallowance under section 14A r.w. Rule 8D(2)(iii) made by the AO at para 4 of the order of assessment, it appears to us that there is some merit in the averments of the learned A.R. However, we restore the matter for verification of the correctness of the assessee’s claim, that the AO’s computation of the disallowance under Rule 8D(2)(iii) at ₹ 2,56,495/- is incorrect and that correct working of the said disallowance by the assessee is ₹ 1,28,247/- as given at para 5.1 (supra). The AO is directed to verify the veracity of the assessee’s claim and workout the correct disallowance under section 14A r.w. Rule 8D(2)(iii) after affording the assessee adequate opportunity of being heard.
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