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2019 (9) TMI 853 - AT - Income TaxDisallowance u/s 14A - expenditure having direct or indirect nexus for earning the exempt income - HELD THAT:- The assessee company has earned dividend income from its equity investment in Gillette Group India Pvt. Ltd., that too from the old investment and no investment has been made during the year under assessment as is evident form audited balance sheet. Even otherwise, it is settled principle of law that only actual expenditure having direct or indirect nexus for earning the exempt income can be disallowed u/s 14A of the Act. So, in these circumstances, we find no illegality or perversity in the impugned order passed by the ld. CIT (A) restricting the disallowance from ₹ 2,69,64,423/- to ₹ 25,28,619/- u/s 14A of the Act. Consequently, the appeal filed by the Revenue is hereby dismissed
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