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2022 (6) TMI 66 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - disallowance made at the ad hoc rate of 20% of the exempt income - HELD THAT:- As no justification has been offered by Revenue for estimation of disallowance @ 20% of exempt income; and further, as the assessee has agreed to disallowance u/s 14A being computed in accordance with method prescribed under Rule 8D; in the specific facts and circumstances of the present appeal before us; we direct the AO to compute the disallowance u/s 14A of Income Tax Act in accordance with the method referred to in the Rule 8D of Income Tax Rules. The assessee has, as per the computation submitted, quantified the disallowance at Rs.1,244/- as mentioned earlier, in foregoing paragraph (B) of this order. The Assessing Officer is directed to verify this computation at the time of giving effect to this order. The Assessing Officer is further directed to provide reasonable opportunity to the assessee to explain the computation, and to make submissions, in case computation presented by the assessee’s side in accordance with Rule-8D of Income Tax Rules is not accepted by the Assessing Officer.
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