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2018 (4) TMI 872 - AT - Income TaxAddition u/s 14A r.w.r. 8D - Held that:- Rule 8D of the Income Tax Rules applies w.e.f. assessment year 2008-09 only. We reiterate that we are in assessment year 2007-08. We thus find no merit in Revenue’s first substantive ground. MAT - Disallowance made u/s.14A is not to be added in MAT computation u/s.115JB Administrative expenditure disallowance u/s.14A - Held that:- The assessee derived exempt income from dividend of ₹ 48.76 crores, share in partnership firm to ₹ 1.618 crores, interest income of ₹ 14.74 crores and other income of ₹ 3.70lacs only. A safe presumption can be drawn that the assessee incurred major part of its administrative expenses qua the exempt income only. We thus affirm the impugned administrative expenditure disallowance of ₹ 49,85,705/- to a lump sum amount of ₹ 45lacs and grant part relief to the extent of ₹ 4,85,705/- only. Levy of interest u/s.234B - Held that:- It has come on record that the impugned interest liability had been fastened on the assessee only in view of retrospective amendment. Hon’ble jurisdictional high court in CIT vs. National Dairy Development Board [2017 (6) TMI 736 - GUJARAT HIGH COURT] holds that such a liability does not arise in case of retrospective amendment. We thus see no reason to interfere with learned CIT(A)’s findings under challenge.
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