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2020 (12) TMI 398 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - A.R. submitted that the disallowance made by the AO consisted of interest disallowance made u/r 8D(2)(ii) as well as expenditure disallowance made u/r 8D(2)(iii) - as argued no disallowance out of interest expenditure under rule 8D(2)(ii) is called for, in A.Y. 2011-12, since the own funds available with the assessee is more than the value of investments - HELD THAT:- As rightly pointed out by Ld. D.R., this submission of the Ld. A.R. requires verification of facts and hence it requires to be examined by the A.O. Accordingly, we set aside the order passed by Ld. CIT(A) on the issue of disallowance of interest expenditure under rule 8D(2)(ii) and restore the same to the file of the A.O. for examining the same in accordance with the decision rendered by jurisdictional High Court in the case of Micro Labs Ltd. (supra). The disallowance of administrative expenses made under rule 8D(2)(iii) in AY 2011-12 is confirmed. Disallowance made u/s 14A in assessment years 2010-11 & 2012-13 - HELD THAT:- CIT(A) has followed the decision rendered by the coordinate bench in holding that the disallowance u/s 14A of the Act should not exceed the amount of exempt income.CIT(A) referred to the decision rendered by Hon’ble Delhi High Court in the case of Joint Investments Pvt. Ltd. (2015 (3) TMI 155 - DELHI HIGH COURT). Disallowance of compensation paid to a person named Shri Mahesh Bhupathi and claimed as expenditure - HELD THAT:- Identical issue in the assessee’s own case and since there is no change in the facts relating to the impugned disallowance, we do not find any infirmity in the order passed by Ld. CIT(A) on this issue. Accordingly, we confirm the same. Addition u/s 40(a)(ia) - Scope of amendment - HELD THAT:- We restore this issue to the file of A.O. for examining the applicability of second proviso to section 40(a)(ia) of the Act in AY 2010-11. See PERFECT CIRCLE INDIA PVT LTD -[ 2019 (1) TMI 1532 - BOMBAY HIGH COURT]
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