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2021 (3) TMI 620 - AT - Income TaxDisallowance u/s 14A - contention of the assessee that, no expenditure has been incurred for earning income, has been rejected by the lower authorities on the ground that some man power must have been required for monitoring financial activity or earning of income relating to dividends as investment - HELD THAT:- The lower authorities have held that even the statutory audit must have also been verified whether the amount of dividend received from the investment/re-investment is accurate/properly accounted for in the assessee’s books of accounts and, therefore, some expenditure of the audit also relates to the activity of earning dividend income. Once the Rule 8D of the Rules has been made applicable, the disallowance in terms of Rule 8D(2)(ii) is automatic and there is no option left with the Assessing Officer except to estimate the disallowance as per rules. In view of the detailed findings of the learned CIT(A) on the issue in dispute, we do not find any error in the order of the learned CIT(A). Accordingly, we uphold the same. The ground no. 1 of the appeal is dismissed. Disallowance carry forward of business/unabsorbed depreciation in absence of evidences - HELD THAT:- CIT(A) has noticed that the assessee has already filed rectification application before the Assessing Officer which was pending. We agree with the finding of the learned CIT(A) that when the issue is already pending before the learned Assessing Officer for rectification, it is not appropriate for her to decide on that issue in appellate proceedings. We, accordingly, concur with the findings of the learned CIT(A) on the issue in dispute. The ground no. 2 of the appeal is dismissed.
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