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2024 (4) TMI 457 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - Addition being 0.5% of average value of investments appearing in the balance sheet as expenditure incurred for earning dividend income - HELD THAT:- In the case of Joint Investment Pvt. Ltd. [2015 (3) TMI 155 - DELHI HIGH COURT] held that the disallowance u/s 14A r/w Rule 8D cannot exceed more than the exempt income. In so far as the contention of the Ld. DR that the amendment brought in by the Finance Act 2022 to section 14A is concerned, we observe that the Hon’ble Jurisdictional High Court in the case of PCIT Vs. M/s Era Infrastructure (India) Pvt. Ltd. [2022 (7) TMI 1093 - DELHI HIGH COURT] held that the said amendment which was brought in by the Finance Act 2022 is for removal of doubts and, therefore, cannot presumed to be retrospective. Therefore, we restrict the disallowance u/s 14A read with Rule 8D(2)(iii) to Rs. 930/- which is the exempt income earned by the assessee during the year under consideration. This ground is partly allowed. Disallowance u/s 40(a)(ia) - non-deduction of TDS on interest paid by the assessee - contention of the assessee that the AO disallowed not only the interest but also processing fee and pre-closure charges treating them as interest for non deduction of TDS - HELD THAT:- Assessing Officer shall examine all the above contentions of the assessee and should decide afresh keeping in view the decisions of Ansal Landmark Township P. Ltd. [2015 (9) TMI 79 - DELHI HIGH COURT] and Dr. Jaideep Kumar Sharma [2015 (11) TMI 1638 - DELHI HIGH COURT] wherein held that as long as the payee/resident has filed its return of income disclosing payment received and has also paid taxes on such income the assessee would not be treated as a person in default - Thus, this issue in ground is restored to the file of the AO for deciding afresh - Assessee ground allowed for statistical purpose.
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