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2017 (1) TMI 992 - AT - Income TaxDisallowance u/s.14A read with Rule 8D - Held that:- It is a settled position that if an assessee incurs interest expenditure for carrying out its business,same has to be allowed.Disallownace can be made if it incurs interest expenditure for earning exempt income.Shares and securities have been held by the assessee as stock in trade,so,there wa no justification in disallowing the interest expenditure. As in the case of India Advantage Securities Ltd.(2015 (6) TMI 140 - BOMBAY HIGH COURT) held that disallowance of expenses can be made which are incurred for earning dividend. For that purpose,the figures under the head Investment could be taken and some charges apportioned for the purpose of computing the expenses. AO, except for the year under appeal,has allowed the interest expenditure for earlier and subsequent years. He has not given any reasons for deviating from the stand taken in earlier years. Thus we hold that there was no justification in disallowing the interest expenses - Decided n favour of assessee
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