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2017 (5) TMI 1150 - AT - Income TaxDisallowance u/s 14A r.w.Rule 8D(2)(iii) computation - Held that:- We are of the considered view that the assessee did offer the suo motu disallowance but did not relate the same to the accounts of the assessee as is contemplated u/s 14A(2) of the 1961 Act and in the absence thereof the AO applied Rule 8D of the 1962 Rules r.w.s. 14A of the 1961 Act to make disallowance of expenditure incurred in relation to income which does not form part of the total income Assessee has conceded that if one more opportunity is granted the assessee will explain disallowance of expenditure incurred in relation to income which does not form part of the total income having regards to the accounts of the assessee before the AO and injustice caused to the assessee by invocation of Rule 8D of the 1962 Rules r.w.s. 14A of the 1961 Act can be removed Keeping in view facts and circumstances of the case, in our considered view the matter needs to be set aside and restored to the file of AO for re-computing the disallowance u/s. 14A of the 1961 Act of the expenditure incurred in relation to the earning of income which does not form part of the total income having regards to the accounts of the assessee. Appeal filed by the assessee allowed for statistical purposes.
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