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2021 (7) TMI 530 - HC - Income TaxDisallowance u/s 14A r.w.r. 8D - Tribunal treating 3% of the exempt income as the expenditure to be disallowed u/s 14A - HELD THAT:- As decided in M/S. ENVESTOR VENTURES LTD. [2021 (1) TMI 922 - MADRAS HIGH COURT] disallowance under rule 8D of the IT Rules read with Section 14A of the Act can never exceed the exempted income earned by the Assesee during the particular assessment year and further, without recording the satisfaction by the Assessing Authority that the apportionment of such disallowable expenditure made by the Assessee with respect to the exempted income is not acceptable for reasons to be assigned the Assessing Authority, he cannot resort to the computation method under Rule 8D of the Income-tax Rules, 1962. Also see HCL TECHNOLOGIES LTD. [2018 (5) TMI 357 - SUPREME COURT]. - Decided in favour of the assessee.
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