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2022 (8) TMI 668 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - AO has made disallowance as per 8D(ii) of the Act by considering the 1% of the average investments as held by the assessee - HELD THAT:- Only those investments have to be considered in which the assessee has earned/yielded exempt income which does not form part of the total income during the relevant previous year, whereas, it appear that the AO has considered the entire investments for want of not submitting details by the assessee. Assessee also did not furnish details of the investments made on which the assessee has received exempt income as required under Rule 8D(2)(ii) . Accordingly, we direct to the assessee that he will submit the details of the investments in which the assessee has received exempt income during the assessment year and the AO shall calculate the disallowance as per Rule 8D(2)(ii) for the relevant assessment year. Rule 8D(2)(ii) has been amended by the IT (Fourteenth Amdt.) Rules 2016 w.e.f 2/6/2016 , which has been cited supra. Considering all remit this issue to the file of the AO for re-computation of disallowance u/s14A of the Act r.w. Rule 8D(2)(ii). The assessee is directed to provide the necessary details/ documents to substantiate his case and not to seek unnecessary adjournment for early disposal of the case. Appeal of the assessee is allowed for statistical purposes.
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