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2021 (1) TMI 12 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - AO computed the disallowance at 1% of the average monthly balance of the investment - Suo moto disallowance by assessee - HELD THAT:- While invoking Rule 8D of the I.T. Rules, 1962 the AO has not pointed out/identified any specific infirmity in the disallowance so offered by the appellant/assessee. A single sentence "explanation of the assessee was considered, but not acceptable" has been made instead of giving specific reason for such non acceptance. It is evident from the records particularly the order passed by the Ld. AO that without recording satisfaction about the correctness of the claim of assessee u/s. 10(34) of the Act, the Ld. AO has made the quantum of disallowance by invoking the Rule 8D of the Income-tax Rules, 1962. The accounts of the assessee has been examined, in absence of which the order of disallowances and Ld. AO is not sustainable. It appears from the documents submitted before us that for the AYs. 2010-11, 2011-12 and 2012-13 though such query in respect of disallowance under section 14A/Read with Rule 8D was raised by the AO, after examining the same manner and method of working out disallowance of administrative expenses no further disallowance was made by the AO accepting the same as fair and reasonable. Under the circumstances of the case, we find no reason as to why the suo motu disallowance made by the assessee to be disturbed in the same set of factual position - no reason for such disallowance and the same is hereby deleted. This ground of appeal filed by the assessee is, thus, allowed. Disallowing credit for advance tax paid and full TDS credit - HELD THAT:- As considered the enclosed copy of 26 AS, from which it appears that the assessee is entitled to avail such relief. We find that though such additional ground was raised by the assessee before the Ld. CIT(A), but the same was not adjudicated by him. We direct the Ld. AO to grant relief to the assessee in respect to the additional ground in accordance with law.
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