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2020 (5) TMI 625 - AT - Income TaxDisallowance u/s 14A r.w rule 8D(2)(iii) - disallowance suo motto by assessee - HELD THAT:- If something has been offered by an assessee patently under some misconstruction of law, then the revenue cannot be permitted to plead that since the assessee has offered as its income, therefore, it has to be taxed. Therefore which is based on large number of decisions including that of Hon’ble jurisdictional High Court in the case of S.R. Koshti [2004 (12) TMI 62 - GUJARAT HIGH COURT] allow the additional ground of appeal as well as original ground raised by the assessee. In other words, since there is no tax free income, there could not be any disallowance under section 14A - direct the AO to re-compute the income of the assessee after excluding the suo motto amount disallowed by the assessee. Apart from the above disallowance made by the AO on account of administrative expenses is concerned, this also stands deleted. Both amounts be excluded from the computation of income, and thereafter income of the assessee be duly determined. - Appeal of the assessee is allowed.
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