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2019 (4) TMI 1578 - AT - Income TaxDisallowance u/s 14A r.w.r 8D - claim restricted to the exempt income earned by the assessee - whether investment in downstream subsidiary companies is out of business expediency and therefore the provisions of section 14A of the Act could not have been invoked ? - HELD THAT:- We find that the assessee has raised a specific ground that the investments were made to gain control of the subsidiary companies and therefore, it is its business expediency. The assessee however, relied upon the contentions before the authorities below. Therefore, the ground No.4 on this issue is rejected. Respectfully following the decision of the Coordinate Bench in the case of M/s. Jasper Industries [2018 (6) TMI 1601 - ITAT HYDERABAD] we direct the AO to restrict the disallowance u/s 14A r.w.r 8D only to the exempt income earned by the assessee during the relevant previous year. Assessee’s appeal is accordingly partly allowed.
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