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2021 (5) TMI 817 - AT - Income TaxDisallowance u/s 40(a)(ia) - payment of operation and management charges AND reimbursement of expenses - HELD THAT:- As decided in own case[2015 (7) TMI 1374 - ITAT AHMEDABAD] wherein held that provision of section 40(a)(ia) of the Act are not applicable in the case of the assessee and on the base of the consistency matter was decided in favour of the assessee. Disallowance u/s. 14A r.w.r. 8D - HELD THAT:- In this case the assessee is having huge interest free funds for making investments and there being no nexus of the borrowed funds and investments made the disallowance was interest expenses cannot be made. However, assessee had taken alternate plea that the total exempt income earned during the year is only ₹ 3,40,000/- hence disallowance u/s. 14A cannot exceeds this sum. CIT(A) considering the judgment of Jurisdictional High Court in the matter of CIT vs. Corrtech Energy P. Ltd. [2014 (3) TMI 856 - GUJARAT HIGH COURT]wherein it is held that disallowance cannot be more then exempt income. Thus, in our considered opinion order of the "Ld. CIT(A)" does not required any kind of interference at our end. He has passed the detailed and reasoned order therefore this ground of revenue is dismissed. Disallowance of Management Charges u/s 40A(2)(b) - HELD THAT:- As decided in own case similar grounds has been raised in assessee's own case in appeal filed by the revenue wherein we have dismissed this ground of appeal. Thus, in parity with the above said order we dismissed this ground of appeal of revenue.
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