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2022 (1) TMI 1144 - AT - Income TaxRevision u/s 263 - addition u/s 14A - CIT disregarded the contention of the assessee by taking view that Rule 8D is mandatory in nature from A.Y. 2008-09 and the AO is bound to compute disallowance as per formulae provided under Rule 8D - HELD THAT:- The assessee has earned exempt income in the form of dividend income of ₹ 202,377/-. Further the AO while passing the original assessment order has already disallowed Rs. ₹ 2,35,039/ under section 14A. Now, it is settled position under the law that disallowance under section 14A must not exceed the exempt income. Thus, the order passed by the AO is not erroneous. Therefore, the twin condition as enumerated in section 263 of the Act is not fulfilled in the present case, therefore, the order passed by the ld. Pr. CIT is not sustainable in law, which we set-aside. Thus, the assessee succeeded on the primary submissions of the ld. AR of the assessee. - Decided in favour of assessee.
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