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2023 (4) TMI 944 - AT - Income TaxDisallowance u/s. 14A r.w.r. 8D - suo motto disallowance made by the assessee - HELD THAT:- It is settled proposition of law that disallowance under section 14A read with Rule 8D cannot be more than the exempt income earned by the assessee. In the instant case the assessee has suo-moto disallowed an amount u/s 14A r.w.r. 8D which is more than the dividend income earned by the assessee. This issue has successfully been decided by cases of HSBC Invest Direct (India) Ltd. [2019 (2) TMI 731 - BOMBAY HIGH COURT] and Nirved Traders Pvt Ltd [2019 (4) TMI 1738 - BOMBAY HIGH COURT], Oil Industry Development Board [2019 (3) TMI 1571 - SC ORDER] and State Bank of India [2018 (11) TMI 1565 - SC ORDER] that disallowance u/s 14A should be restricted to amount of exempt income of assessee only and not a higher income. Decided in favour of assessee.
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