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2020 (12) TMI 161 - AT - Income TaxDisallowance u/s. 14A - AO took the view that the assessee has not computed disallowance as per Rule 8D, thus accordingly he computed the disallowance - Suo moto addition by assessee - HELD THAT:- As during the year under consideration, the assessee has received dividend income of ₹ 8.47 crores and it has voluntarily disallowed a sum of ₹ 28.56 crores u/s. 14A - from the computation of income assessee has also earned Long term capital gain of ₹ 13 crores and claimed the same as exempt. Thus aggregate amount of exemption claimed was ₹ 21.47 crores. We also notice that the dividend income was received from one group company named M/s. Mindtree Limited and the long term capital gain was also earned on sale of shares of M/s. Mindtree limited. As in the earlier year, the disallowance made by the assessee voluntarily is more than the amount of exempted income. Hence,disallowance voluntarily made by the assessee would meet the requirements of sec. 14A of the Act. Accordingly, following the order passed in AY 2013-14, we are of the view that further disallowance made by the AO and confirmed by ld CIT(A) is not warranted in the facts and circumstances of the case. - Decided in favour of assessee.
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