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2023 (3) TMI 1228 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - AR contended that for working out of disallowance u/s. 14A r.w.r 8D, AO has considered total average investments instead of average investments which have yielded dividend income - HELD THAT:- We find that in the case of Cargo Motors (P) Ltd. [2022 (10) TMI 571 - DELHI HIGH COURT] have held that for the purpose of making disallowance of expenses u/s. 14A r.w.r. 8D only those investments are to be considered for computing average value of investments which have yielded exempt income during the relevant year. Before us, Revenue has not placed on record any contrary binding decision. We further find that there is no finding of the lower authorities on the investments which have yielded exempt income. Disallowance u/s. 14A needs to be reworked by the AO, in view of the decision of Cargo Motors (P) Ltd. (supra).This ground of assessee is allowed for statistical purposes.
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