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2019 (12) TMI 748 - AT - Income TaxDisallowance u/s 14A r.w. Rule 8D - HELD THAT:- As relying on MAXOPP INVESTMENT [2018 (3) TMI 805 - SUPREME COURT] CIT(A) has rightly sustained the order of the AO in including strategic investments in subsidiaries for computing disallowance u/s 14A r.w. Rule 8D(2)(iii). Therefore, the ground of appeal No. 4(e) is dismissed. Also similar grounds of appeal pleading for excluding investment in group companies stating those being strategic in nature are dismissed. In respect of the other grounds of appeal, we are of the considered view that the ratio laid down in Vireet Investment (P.) Ltd. [2017 (6) TMI 1124 - ITAT DELHI] that only those investments are to be considered for computing average value of investment which yielded exempt income during the year has relevance in the instant case. Disallowance u/s 14A r.w. Rule 8D cannot exceed the exempt income earned by the assessee during the year under consideration as laid down in HSBC Investment Direct (India) Ltd. [2019 (2) TMI 731 - BOMBAY HIGH COURT] , M/s Empire Package Pvt. Ltd. [2016 (2) TMI 505 - PUNJAB AND HARYANA HIGH COURT] .
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