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2022 (8) TMI 734 - AT - Income TaxDisallowance u/s 14A - assessee claimed interest expenditure from interest free own funds in the form of share capital and reserves as well as surplus - HELD THAT:- Interest free funds were much higher than the investment in shares and partnership firms. There is no change in investment except increase investment to the extent of share of profit received from partnership firm. CIT(A) while restricting the disallowance under Section 14A of the Act directed the Assessing Officer to restrict the same on the basis of the Special Bench decision in case of ACIT vs. Vireet Investment Pvt. Ltd. [2017 (6) TMI 1124 - ITAT DELHI] MAT Computation - The computation under Clause(f) Explanation-1 to Section 115JB(2) is to be made without restoring to the computation as contemplated under Section 14A read with Rule 8D of the Income Tax Rules, 1962. The CIT(A) also relied upon the decision of Jurisdictional High Court in case of PCIT vs. Alembic Limited [2017 (9) TMI 189 - GUJARAT HIGH COURT] and, therefore, deleted the book profit and restricted the disallowance under Section 14A to the extent of Rs.9,06,254/-. The issue is covered and identical in the present case. The CIT(A) has rightly made the said observations and there is no need to interfere with the same. Hence, appeal of the Revenue is dismissed.
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