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2019 (11) TMI 132 - AT - Income TaxDisallowance u/s 14A read with Rule 8D(2) - HELD THAT:- We should direct the Assessing Officer to give effect to the said direction of the CIT(A) by passing a speaking order after considering the ‘principle of proportion’, ‘principle of presumption’ and the Jurisdictional High Court’s judgement in the cases of (i) CIT vs. Reliance Utilities & Powers Ltd.[2009 (1) TMI 4 - BOMBAY HIGH COURT] and (ii) HDFC Bank Ltd. vs. CIT [2016 (3) TMI 755 - BOMBAY HIGH COURT] etc. Accordingly, the Assessing Officer is directed to pass a speaking order in a time bound manner within the three months from the date of pronouncement of this order after granting a reasonable opportunity of being heard to the assessee. Accordingly, the issue relating to the applicability of the proportions under clause (ii) of Rule 8D(2) of the Rules is allowed for statistical purposes. Applicability of the provisions of clause (iii) of Rule 8D(2) of the Rules - HELD THAT:- Assessee did not have much to argue in this respect except relying on the ground. On perusal of the order of the CIT(A), we find the CIT(A) rightly complied with the provisions of the said clause (iii) of Rule 8D(2) of the Rules. Therefore, we find no reasons to interfere with the same. Accordingly, the relevant ground on this issue stands dismissed.
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