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2018 (10) TMI 492 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - Held that:- The same basis cannot be adopted in the year under consideration. If we do so, it will result in the enhancement of the disallowance as made by the AO for which the Tribunal has no power. In the case relied upon by the Ld DR, we note that the total disallowance was made by the AO as per Rule 8D for ₹ 17.54 crores. The disallowance confirmed by the Hon’ble ITAT @10% of the total administrative expenditure was within the limit of the disallowance as made by the AO in his assessment order. Therefore, we are reluctant to take any guidance in the given facts and circumstances from the order of Tribunal in the own case of the assessee. Disallowance on account of administrative expenses as per Rule 8D - Held that:- AO has treated the sum disallowed by the assessee for ₹ 2,19,585.00 in the income tax return as direct expenses incurred in relation to dividend income under rule 8D(2)(i) of Income Tax Rule. However the action of the AO is not based on any material suggesting that the amount of ₹ 2,19,585.00 is the direct expenditure incurred by the assessee in relation exempted income as specified under rule 8D(2)(i) of Income Tax Rules. Thus we direct to delete the same. Thus, the ground of appeal of the assessee is partly allowed.
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