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2019 (10) TMI 249 - AT - Income TaxDisallowance made under section 14A r.w.r. 8D for determining the book profit u/s 115JB - HELD THAT:- None of the judgments deals with the determination of income under the provisions of section 115JB of the Act. Therefore, we find that there is no precedent available to resolve the controversy on hand. However, we are also conscious to the fact that the above judgment was rendered in connection with the income determined under normal computation of income but to our mind the same principles can also be applied to the case on hand. It is because, the provisions of section 115JB of the Act require to make the disallowance of the expenditure related to any income to which section 10 applies other than section 10(38) of the Act. Accordingly, we hold that the expenses incurred in connection with the exempted income cannot exceed the amount of such exempted income under the provisions of section 115JB of the Act. Accordingly, we limit the disallowance to the extent of rupees 43,150.00 under the clause (f) to section 115 JB of the Act. Hence the ground of appeal of the assessee is partly allowed.
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