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2014 (5) TMI 1182 - AT - Income TaxAddition u/s 14A - HELD THAT:- Estimation of disallowance of 2% of gross dividend income as the expenditure, as being incidental to the earning of dividend income u/s. 14A of the Act as the assessee had not furnished the details of expenditure incidental to earning of dividend income, estimation was made of the expenditure attributable to dividend income at 2% of the gross dividend income. We estimate the expenditure incurred towards earning of exempt dividend income of ₹ 11,61,400/- at 2% of the gross dividend income which works out to ₹ 23, 228/-. We, therefore, set aside the orders of the lower authorities and direct the Assessing Officer to restrict the disallowance u/s. 14A of the Act. Addition u/s. 36(1)(viia) - provisions for bad and doubtful debts - HELD THAT:- It is clear that the provisions for bad and doubtful debts should be allowed u/s. 36(1)(viia), to the extent of provision made and available in the books of account, whether made in the current previous year or in the preceding previous years as we find that none of the lower authorities i.e. either AO or the CIT (Appeals) has examined the issue under consideration from this angle and as the entire facts are not available for us to adjudicate the issue, we, in the interest of substantial justice, set aside the orders of the lower authorities and remand the matter back to the file of the Assessing Officer for adjudication of the issue afresh as per law in the light of the discussions made hereinabove. Needless to mention that the AO shall allow reasonable and proper opportunity of hearing to the assessee before adjudicating the issue afresh.
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