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2017 (3) TMI 530 - AT - Income TaxAddition u/s 14A r.w.r 8D - Held that:- CIT(A) verified the books before giving a finding that investments were made in the earlier years out of own funds. No material was placed by Revenue to contradict the findings of CIT(A). Therefore, we hold that disallowance on that count is not warranted. Referring to subsidiary issue i.e., administrative expenditure. In the case of M/s. Daga Global Chemicals Pvt. Ltd., (2015 (1) TMI 1204 - ITAT MUMBAI) observed that disallowance under section 14A read with Rule 8D cannot exceed the exempt income. No other case law was placed before me wherein a different view was taken. Even if there is a different view, the one which is in favour of the assessee deserves to be accepted. Therefore, we hold that the disallowance if any, should not exceed ₹ 2,86,655. Learned Counsel for the Assessee, fairly admitted that if the disallowance is restricted to the exempt income he would not seriously press other grounds. The appeal is accordingly disposed of by restricting the disallowance to ₹ 2,86,655. - Decided partly in favour of assessee.
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