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2019 (7) TMI 1094 - HC - Income TaxDisallowance u/s 14A on ground of eligibility of deduction u/s. 80P(2)(d) - as per AO Sec. 14A is applicable in such cases where part of the income is not included in the total income - alleged that borrowed funds were used for interest income and dividend income earned - share capital / reserve of the assessee are less than such investment to prove which assessee has used borrowed funds for such investment / FDs - HELD THAT:- The two questions proposed by the Revenue are no longer res integra in view of the two decisions of this Court in CIT vs. Surat District Co. Op. Milk Producer Union Ltd [2018 (8) TMI 1855 - ITAT SURAT ] wherein as in view of decision decision of the Hon'ble Supreme Court in the case of Distributors (Baroda) P. Ltd vs. Union of India [1985 (7) TMI 1 - SUPREME COURT] we are in complete agreement with the view taken by the learned Tribunal allowing the deduction to the assessee u/s 80P(2)(d) on the amount of interest and dividend earned on the investment / deposits with the other cooperative societies. Further it was held that held that there is no application of section 14A as far as the deduction under section 80A to 80U under Chapter VIA of the Act. In view of the aforesaid, no error, not to speak of any error of law could be said to have been committed by the Tribunal in passing the impugned order. No interference is warranted. This appeal, therefore, fails and is hereby dismissed.
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