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2018 (4) TMI 799 - AT - Income TaxAddition u/s 41 - Held that:- In this case the addition has been made u/s 41(1) of the Act on the ground that it is an unclaimed loan. The presumption of the AO is that this loan will never be claimed. Such a presumption cannot be made. Respectfully following the proposition of law laid down by the Hon’ble Delhi High Court in the case of CIT vs Shri Vardman Overseas Ltd (2011 (12) TMI 77 - DELHI HIGH COURT) and Glen Williams vs ACIT (2015 (8) TMI 974 - ITAT BANGALORE) delete this addition and allow this ground of the assessee. Disallowance made u/s 14A - Held that:- The dividend earned by the assesse is only ₹ 5,280/-. The disallowance made by the AO is ₹ 4,73,913/-. The Hon’ble Delhi High Court in the case of CIT v Shri Vardaman Overseas Ltd [2011 (12) TMI 77 - DELHI HIGH COURT] held that the quantum of disallowance cannot exceed the dividend income which is exempt from tax. Hence restrict the disallowance to ₹ 5,280/- which is the exempted income in this case. The balance disallowance is hereby deleted.
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