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2016 (12) TMI 1483 - HC - Income TaxApplication of Rule 8D of the Income Tax Rules to disallow expenses on exempt income - Held that:- Tribunal followed the decision of this Court in Godrej & Boyce Manufacturing Co. Ltd., v/s. DCIT [2010 (8) TMI 77 - BOMBAY HIGH COURT ] wherein it has been held that for the assessment years prior to Assessment Year 2008-09, Rule 8D of the Income Tax Rule will not be invoked to work out the disallowance of expenditure under Section 14A of the Act. The Court held that till Assessment Year 2008-2009, the disallowance of expenditure has to be done on a reasonable basis. The impugned order of the Tribunal on application of the reasonable method, disallowed expenditure to the extent of 1% of exempted dividend income under Section 14A of the Act. No substantial question of law Entrance fees paid for club membership - revenue or capital receipt - Held that:- The impugned order of the Tribunal has allowed ex-parte membership fee following the order of this Court in Otis Elevator Co. (India) Ltd. Vs. CIT [1991 (4) TMI 53 - BOMBAY High Court] paid for admission in a club as revenue expenditure. No substantial question of law
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