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2015 (10) TMI 65 - AT - Income TaxDisallowance made u/s. 14A - CIT(A) deleted the disallowance - Held that:- This issue is now covered by the decision of Hon'ble jurisdictional High Court in the case of CIT Vs. R.E.I. Agro Ltd. [2013 (12) TMI 1517 - CALCUTTA HIGH COURT] wherein the order of Tribunal in DCIT Vs. R.E.I. Agro Ltd.[2013 (5) TMI 582 - ITAT KOLKATA] was confirmed to held that AO has not examined the accounts of the assessee and there is no satisfaction recorded by the AO about the correctness of the claim of the assessee and without the same he invoked Rule 8D of the Rules. AO has not considered the claim of the assessee and straight away embarked upon computing disallowance under Rule 8D of the Rules on presuming the average value of investment at 1/2% of the total value. Respectfully following the decision in the case of J. K. Investors (Bombay) Ltd. [2013 (5) TMI 580 - ITAT MUMBAI] ground of appeal of revenue is dismissed. Even otherwise, on merits also the assessee had made disallowance itself and filed computation of disallowance as per rule 8D of the Rules. The AO could not find any fault in the computation of disallowance made by assessee and secondly, the assessee does not have any investment and all the shares are held as stock in trade, as is evident from the orders of the lower authorities. Once, the assessee has kept the shares as stock in trade, the rule 8D of the Rules will not apply. Hence, the assessee's case is covered by jurisdictional High Court by the case law of R.E.I. Agro Ltd., supra and also on merits. - Decided in favour of assessee.
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