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2018 (5) TMI 957 - AT - Income TaxDisallowance u/s 14A r.w.r.8D - computation of claim - Held that:- Lower authorities having ignored the computation of disallowance u/s 14A of the Act given by the assessee, and having proceeded to invoke that provision of Rule 8D(2) for arriving at the disallowance figure u/s 14A of the Act, cannot again make further addition of ₹ 65,537/- (i.e. working given by the assessee). At any stretch of imagination the said specified items cannot be construed as direct expenses incurred for earning dividend income as stated by the ld. CIT(A). Hence we direct the ld. AO to delete the disallowance u/s 14A of the Act to the tune of ₹ 65,537/- made in the first limb of Rule 8D(2) of the rules. With regard to the disallowance made under the third limb of Rule 8D, we direct the ld. AO to consider only those investments that had yielded dividend income in consonance with the decision rendered by this Tribunal in the case of REI Agro Ltd reported in 2013 (9) TMI 156 - ITAT KOLKATA. Accordingly the grounds raised by the assessee for A.Y.2008- 09 are allowed for statistical purposes. Deduction u/s 10A - apportionment of common expenses - Held that:- Business of PBC Software (10A unit) is also carried on in the same business premises where other business are carried on. Hence we hold that the ld. CIT(A) had rightly apportioned the common expenses by identifying certain specific expenses thereon and had apportioned the same to 10A unit which in turn had resulted in corresponding reduction in the claim of deduction u/s 10A of the Act. We find no infirmity in the order of the ld. CIT(A) in this regard.
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