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2019 (5) TMI 1051 - AT - Income TaxDisallowance of interest computed in terms of Rule 8D(2)(ii) u/s 14A - ex parte order passed by the CIT(A) - HELD THAT:- We find merit in the plea raised on behalf of the assessee that the disallowance under s.14A cannot surpass the quantum of exempt income in view of the long line of judicial precedents prevailing in this regard including the decision referred and relied upon by the assessee in State Bank of Patiala [2017 (5) TMI 843 - PUNJAB AND HARYANA HIGH COURT] against which the SLP of the Revenue stands dismissed by the Hon’ble supreme Court of India [2018 (10) TMI 509 - SC ORDER]. Accordingly, we set aside the order of the CIT(A) in this regard and direct the AO to restrict the disallowance to the extent of the exempt income - we set aside the order of the CIT(A) in this regard and direct the AO to restrict the disallowance to the extent of the exempt income. Appeal of the Assessee is partly allowed.
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