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2021 (8) TMI 1190 - ITAT MUMBAIDisallowance u/s.14A r.w.r. 8D - whether only activity of the assessee which is exempt from tax is the agriculture activity and that during the year assessee had incurred loss from agricultural activity which was duly disallowed by the assessee in the return of income - HELD THAT:- Entire expenses attributable to the agricultural division had already been subject matter of voluntary disallowance by the assessee - Other expenses incurred are only expenses attributable to the regular business of the assessee and it could be safely concluded that the same cannot be construed to have incurred for the purpose of earning any exempt income - assessee had vehemently pleaded before the lower authorities that interest paid on loans are used only for the purpose of non-agri division activities of the assessee which does not require any apportionment towards the agri- division. This fact has not been controverted by cogent evidences by the lower authorities - there cannot be any disallowance of interest under second limb of Rule 8D(2) of the Rules - disallowance made under first and third limb of rules, the same gets subsumed in the disallowance of loss incurred from agricultural division which had already been made by the assessee in the return of income. Accordingly, there cannot be any disallowance of expenses separately u/s.14A of the Act in the peculiar facts of the instant case. Ground No.1 raised by the assessee is allowed.
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