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2020 (7) TMI 187 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - investment in shares - Addition partly sustained by the Ld. CIT(A) - HELD THAT:- Entire investment in shares was made by the assessee out of her own funds and it is observed that this position was accepted by the AO as well as by the CIT(A) thus disallowance made on account of interest u/s 14A as worked out by applying Rule 8D(2)(ii) thus is not sustainable and direct the AO to delete the same. Disallowance on account of other expenses u/s 14A r.w.r. 8D(2)(iii) - assessee has contended that the same is required to be worked out by taking into consideration only the value of investment in shares which actually fetched the exempt dividend income to the assessee and not the value of entire investment as done by the AO - HELD THAT:- Since this contention of the assessee is duly supported by the decision of Hon’ble Kolkata High Court in the case of REI Agro Ltd [2013 (12) TMI 1517 - CALCUTTA HIGH COURT] we direct the AO to re-compute the disallowance to be made by applying Rule 8D(2)(iii) taking into consideration only the value of investment in shares which actually fetched exempt dividend income to the assessee during the year under consideration. Order being pronounced after ninety (90) days of hearing - COVID-19 pandemic and lockdown - HELD THAT:- Taking note of the extraordinary situation in the light of the COVID-19 pandemic and lockdown, the period of lockdown days need to be excluded. See case of DCIT vs. JSW Limited [2020 (5) TMI 359 - ITAT MUMBAI]
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