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2018 (11) TMI 383 - AT - Income TaxAssessment u/s 153A r.w.s. 143 - addition u/s 14A - Held that:- It is an undisputed fact that there was no incriminating material found in the course of search leading to addition/disallowance made u/s. 14A of the Act. It is the finding of the Assessing Officer that assessee had filed return of income making suomotu disallowance u/s. 14A of the Act which return was filed prior to the date of search and the assessment was completed u/s. 143 of the Act. The Revenue could not rebut the findings of the Ld.CIT(A). Therefore, in the absence of any incriminating material found in the course of search and in view of the of the decision of the Hon'ble Jurisdictional High Court in the case of CIT v. Continental Warehousing Corporation [2015 (5) TMI 656 - BOMBAY HIGH COURT] - CIT(A) has rightly deleted the disallowance made u/s. 14A. Decided in favour of assessee Addition u/s 14A - disallowance of indirect expenses under Rule 8D (2)(ii) - Held that:- It is the finding of the Assessing Officer that the assessee received dividend income of ₹.750/- and claimed as exempt income. In the circumstances, the disallowance shall be restricted only to the exempt income received by the assessee. Thus, we direct the Assessing Officer to restrict the disallowance u/s. 14A r.w. Rule 8D to ₹.750/-. Grounds raised by the Revenue are dismissed and the grounds raised by the assessee for the Assessment Year 2013-14 are partly allowed.
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