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2018 (4) TMI 1204 - AT - Income TaxDisallowance u/s. 14A - reduction of disallowance voluntarily made by the assessee - Held that:- The assessee has made voluntary disallowance u/s 14A of the Act even though it did not receive any dividend income. As per the decisions rendered by various courts, no disallowance is required to be made in the absence of exempt income. Hence the assessee has filed CO with the plea to delete the voluntarily disallowance made by it, which is supported by various decisions. Accordingly we allow the CO filed by the assessee. The relief granted to the assessee in CO may reduce the assessed income, which may also go below the returned income. This issue, whether the assessed income can go below the returned income (which was urged by Ld DR), has been examined and decided in favour of the assessee by the co-ordinate bench in the case of Tata Industries Ltd (2016 (7) TMI 1011 - ITAT MUMBAI) which has followed the decision rendered by another co-ordinate bench in the case of Shri Chandrashekhar Bahirwani (2015 (6) TMI 1061 - ITAT MUMBAI)- Accordingly we direct the assessing officer to exclude the disallowance voluntarily made by the assessee also u/s 14A of the Act. - Decided in favour of assessee
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